The Minister for Finance, Dr. Cassiel Ato Forson has presented the 2025 budget statement on behalf of President John Dramani Mahama on March 11, 2025.
The theme is “Resetting the Economy for the Ghana We Want” to address economic instability and job creation.
– Various financial reports were submitted, including the 2024 Petroleum Funds Report, Energy Sector Levies Report, and African Union Import Levy Report.
State of the Economy (2024)
– The government inherited a deep economic crisis, including high debt, fiscal risks, and exchange rate instability.
– Inflation rose to 23.8%, exceeding the 15% target.
– The primary balance deteriorated to a deficit of 3.9% of GDP instead of the targeted 0.5% surplus.
– Ghana had **GH¢67.5 billion in unpaid arrears**, plus significant debt in the energy and cocoa sectors.
– Debt service obligations are high, with US$8.7 billion in external payments due over the next four years.
Key 2025 Policy and Fiscal Measures
1. Expenditure Cuts
– Government ministries reduced from 30 to 23.
– Wasteful programs like YouStart, One District One Factory, and GhanaCARES eliminated.
– Rationalization of compensation for government employees.
2. Revenue Generation
– New tax reforms, including removal of E-Levy, betting tax, emission levy, VAT on insurance, and withholding tax on unprocessed gold.
– Increase in mining levies and reintroduction of road tolls using technology-driven collection.
3. Macroeconomic Targets
– GDP growth of 4.0%, inflation reduced to 11.9%, and foreign reserves covering at least 3 months of imports.
– Focus on exchange rate stability through gold reserves accumulation.
4. Key Initiatives
– 24-Hour Economy policy to stimulate industrial growth and job creation.
– Big Push Infrastructure Programme with a US$10 billion investment.
– Establishment of the Ghana Gold Board to manage gold exports and foreign reserves.
5. Social Welfare and Development
– Free tertiary education for Persons with Disabilities.
– Free sanitary pads for schoolgirls and increased school feeding budget.
– Uncapping of GETFund and NHIL for sustainable education and healthcare funding.
6. Energy and Debt Management
– Reduction of electricity sector financial losses through IPP contract renegotiations and improved collections.
– Implementation of VAT reforms to reduce the burden on households.
