The Institute of Economic Affairs, Ghana (IEA) has outlined seven key policy initiatives it believes can assist rebuild the economy of the country after the Covid-19 pandemic.

According to a statement issued by the Institute on Friday, the current health crisis has extensively disrupted the steady economic growth of the country hence, its recovery will be difficult.

The IEA however, suggested that should the policies which includes, “Fiscal policy, scaling up revenue, reforming expenditure, monetary policy, natural resource policy, agricultural policy, and industrial policy,” be adhered to, the current economic situation could change for the better.

For the Institute, these well-coordinated and comprehensive policies is the only way Ghana can avert any looming economic crisis post the pandemic.

Explaining how the country can scale up its revenue income, the IEA suggested that government reduces tax evasion enjoyed by some selected companies and also focus more on the informal sector.

According to the Institute, the informal sector is ‘almost entirely outside the tax net’ although the sector contributes nearly 30 per cent of the country’s Gross Domestic Product (GDP).

“Government’s initiative to digitise the economy is welldirected to bringing the informal sector into the tax net. This effort should be supplemented by leveraging new information and communication technologies, such as mobile money and other tech platforms,” the press read.

On reforming expenditure, the statement expressed worry over the excessive expenditure on wages payment and debt services adding that Ghana sacrifices its capital needed growth on these bills.

It, therefore, recommended government “implement the long-delayed public sector reforms to downsize the sector and make it more efficient and productive.”

Source: Myjoyonline.com