The 2025 Budget, presented by Finance Minister Dr. Cassiel Ato Forson on March 11, 2025, focuses on economic stability, job creation, and fiscal discipline under the theme “Resetting the Economy for the Ghana We Want.”
Key Highlights of the Budget
- Economic Recovery & Debt Management
- Ghana’s economy is still in distress despite the IMF-supported programme.
- The total government arrears and commitments stand at GH¢67.5 billion.
- The country faces US$8.7 billion in external debt obligations over the next four years.
- The government will audit arrears and stop wasteful spending.
- Policy & Tax Reforms
- The government abolished several “nuisance” taxes, including:
- E-Levy (1%)
- Betting tax (10%)
- Emission Levy
- 1.5% withholding tax on unprocessed gold
- The VAT regime will be restructured to eliminate distortions and reduce burdens on businesses.
- The government abolished several “nuisance” taxes, including:
- 24-Hour Economy Initiative
- The government will implement a 24-hour economy policy to boost productivity and create jobs.
- The Labour Act and Ghana Investment Promotion Centre Act will be reviewed to support this policy.
- Social Interventions & Education
- No-Academic-Fee policy for all first-year students in public tertiary institutions.
- Free tertiary education for persons with disabilities.
- GH¢3.5 billion allocated for free secondary education.
- Free sanitary pads for schoolgirls to promote gender equality.
- Expansion of the School Feeding Programme, with an increase in feeding cost from GH¢1.50 to GH¢2.00 per child.
- Infrastructure & Energy
- Big Push Programme to invest GH¢13.85 billion in infrastructure.
- Energy sector debt reduction with renegotiation of Independent Power Producer (IPP) contracts.
- Government to introduce road tolls with a digital payment system.
- Ghana Gold Board (GOLDBOD)
- A new regulatory body will be created to monitor, refine, and export gold, boosting forex reserves and cedi stability.
- Public Sector Reforms
- Mahama has cut government ministries from 30 to 23 and reduced the number of ministers to 60.
- Increased transparency in procurement and spending.
- Commitment to IMF Programme
- The government remains committed to meeting IMF targets while prioritizing fiscal discipline and economic growth.
Conclusion
President Mahama’s 2025 Budget is a bold step toward economic recovery, social support, and infrastructure growth. With the abolition of taxes, increased public spending efficiency, and the launch of a 24-hour economy, the government aims to reset Ghana’s economy for prosperity.
Source: David Charway Online
