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Ghana Is Doomed If We......(Part 3)

Wed, 12 Sep 2012 Source: Sarpong, Justice

The essence of security systems are not to prevent crimes form happening, but to make the cost to the person committing the crime unbearable before, during and after the crime. That is to say, if someone wants to commit a crime, he or she will find a way and warped justification to do so.

The indicipline in our economic system due to our Politicians inability to address the soaring government expenses forced the IMF and the World Bank to put a freeze on hiring when President Mills took loans from them. The NDC government was asked not to add new government workers on its payroll for the first three years it was in power and all those people hired were hired to replace those who went on retirement and replace those who died. It is not like our Politicians are not aware that government expenses are not too high. They are definitely aware that, government has to put a moratorium on hiring so why is the government trying to create more jobs for Politicians by creating new Districts and constituencies to be filled by our Politicians who are not needed

Let’s come back to the means, rate and points of tax collection which have been generally accepted, be it grudgingly and with its occasional short-lived but intense protestation. It is not very clear if this is a situation where ignorance is bliss, but whatever the reason is the status quo tax structure is not sustainable. A suggestion to broaden the tax base and lessen the single point burden will be the most efficient way to increase tax revenue and economic activities. Also, the government will do well to let the citizens know how much money is collected in taxes and what the monies are used for. Taxes are barely included in government revenue.

One thing is for sure, when taxes are made punitive as the current tax structure is, people who mean well will somehow think it not improper to engage in criminal or corrupt activities to circumvent the “punishment” they find unbearable. And unlike the security system, the current tax system will never have a deterrent effect but encourage a majority to engage in activities contrary to the tax laws.

As long a stretch as this analysis above is relating to taxation, import and excise duties, and the economy, the desire to veer to the extreme to avoid any taxes and/or duties is not inconceivable. How do we as a nation address this problem of government spending a high percentage of our budget on salaries? We are aware we have to cut government employees who are not needed and there are a lot of Employees in government payroll who are not needed from the Castle to the Ministries to the government offices in all the regions.

First, we have to maintain the level of the Armed Forces and the Police at the present level without any new hirings. We have enough personnel to to maintain the peace in the country if the security services are provided the needed equipments for them to do their job.

Second, we have to reduce the people working at the Castle. We don't need twenty five Communication team members roaming the halls of power doing nothing and running from one radio station to another insulting their political opponents instead of disseminating government policies. We don't need a Presidential Spokesman and Director of Communication at the Presidency. We don't need the Council of state and its salaries and benefits, we don't need them. We don't need any Minister at the Presidency when we have Ministers at the Ministries.

Third, we have to combine some Ministries and eliminate others. As a nation of 24 million people, we don't need 29 Ministries. 15 Ministries is all what we need and if we do that, we can cut 3000 employees and their salaries from the government expenses.

Fourth, we don't only have to cut down expenses but we have to increase revenue and the best way to do it is to increase the tax base of only 20% of Employees paying taxes to at least 60%. Fifth, we have to down corruption at the harbors and at the Airports where government money ends up in individual pockets.

Six, the government should make the environment conducive for private sector investment where Ghanaian businessmen can create jobs to employ those redundant Employees from government employment. There are many other things the government can do to improve or speed up the development of Ghana but we have to take drastic measures to address unecessary employees and improve the revenue collection.

Justice Sarpong

Houston, Texas

(CARDINAL of TRUTH)

Columnist: Sarpong, Justice