Ghana’s Finance Minister, Dr. Cassiel Ato Forson, presented the 2025 Budget Statement and Economic Policy to Parliament today, marking the first major financial blueprint of President John Dramani Mahama’s administration since taking office in January. Delivered on March 11, 2025, the budget has been hailed as a transformative roadmap aimed at stabilizing the nation’s economy, easing financial burdens on citizens, and fostering sustainable growth.
Key Highlights: Tax Relief and Revenue Projections
One of the standout announcements was the scrapping of several controversial taxes, including the Electronic Transfer Levy (E-Levy), the Betting Tax, the Emissions Levy, and taxes on small-scale gold miners. This move, which could result in an annual revenue loss of approximately GHS 7 billion, reflects the government’s commitment to reducing the cost of living and stimulating economic activity. Dr. Forson emphasized that these abolishments align with promises made during the election campaign, signaling a people-centered approach to governance.
Despite the tax cuts, the budget projects total revenue and grants for 2025 at GHS 223.8 billion, equivalent to 17.2% of GDP—a slight increase from 2024’s GHS 186.5 billion (17.4% of GDP). This uptick is underpinned by non-oil revenue measures expected to generate at least 0.5% of GDP, alongside efforts to broaden the tax base and improve collection efficiency.
Spending and Deficit Targets
On the expenditure side, the government has allocated GHS 269.1 billion (20.7% of GDP) on a commitment basis, with GHS 204.7 billion net of interest payments. The total budget appropriation stands at GHS 290.9 billion, reflecting a focus on infrastructure, agriculture, and social programs. However, the fiscal deficit is projected at GHS 43.8 billion, or 3.1% of GDP, indicating a cautious approach to borrowing as the administration seeks to balance growth with fiscal discipline.
Economic Context and Policy Goals
The 2025 budget comes on the heels of a challenging 2024, during which the previous administration missed its target for a primary budget surplus, leaving behind a significant funding gap. Dr. Forson acknowledged these inherited economic struggles but framed the budget as a reset button for Ghana’s financial trajectory. “This is about shaping a stronger future for all Ghanaians,” he declared, echoing President Mahama’s vision of economic transformation.
Key policy goals include stabilizing the exchange rate to curb inflation and potentially lower fuel prices—a concern raised by economists like Professor John Gatsi ahead of the budget. The government also aims to boost local businesses through tax incentives, enhance digital cedi adoption, and address infrastructure deficits by leveraging the Ghana Stock Exchange and the Ghana Infrastructure Investment Fund.
Public Reaction and Political Buzz
The budget has sparked a mix of optimism and debate. Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company, expressed confidence that it would “inspire hope” among Ghanaians, particularly the youth, who have faced economic hardships in recent years. On X, posts celebrated the removal of taxes like the E-Levy and Betting Tax, with users calling it a “game-changer” for ordinary citizens.
However, opposition voices, including Dr. Stephen Amoah, MP for Nhyiaeso, urged the government to present “true fiscal indicators” and avoid political spin. Critics have also questioned how the revenue shortfall from tax cuts will be offset, with some warning of potential cuts to critical services if projections fall short.
Looking Ahead
As Parliament debates the budget in the coming weeks, its approval will set the stage for implementation in 2025.