Accra, March 11, 2025 – Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, has presented the 2025 Budget Statement and Economic Policy to Parliament, outlining ambitious reforms aimed at stabilizing the economy, reducing debt, and creating jobs.
Under the theme “Resetting the Economy for the Ghana We Want,” the budget marks the maiden financial blueprint of President John Dramani Mahama’s new administration. The Finance Minister acknowledged the significant economic challenges inherited but assured Ghanaians that the government is committed to bold reforms to address the crisis.
Fiscal Discipline and Debt Sustainability
Dr. Forson revealed that Ghana’s economy remains burdened by high debt, with total government arrears reaching GH¢67.5 billion, and additional debts owed to Independent Power Producers (IPPs), the Electricity Company of Ghana (ECG), and COCOBOD. He announced measures to audit these obligations before payments are made.
To restore fiscal stability, the government has committed to: Reducing the number of ministers from 88 to 60; Cutting wasteful expenditures; Strengthening public financial management through stricter procurement laws and enforcing fiscal responsibility.
Tax Reforms: Relief for Citizens and Businesses
The government has scrapped several taxes in line with its election promises, including:
The E-Levy (Electronic Transfer Levy); The 10% tax on lottery winnings (Betting Tax); The Emission Levy on industries and vehicles; The VAT on motor vehicle insurance policies. These tax removals are expected to ease financial pressure on households and businesses, improving disposable incomes and promoting tax compliance.
Economic Transformation and Job Creation
A central pillar of the budget is the 24-Hour Economy Policy, designed to boost productivity by allowing businesses and institutions to operate round the clock in three shifts. The government will soon present legislation to support its implementation.
Additionally, the $10 billion ‘Big Push’ infrastructure initiative will see massive investments in roads, schools, hospitals, and energy projects to create jobs and stimulate economic growth.
Social Interventions and Education
President Mahama’s administration has made education a priority, with several groundbreaking initiatives, including:
No-Academic-Fee Policy for all first-year students in public tertiary institutions.
Free tertiary education for Persons with Disabilities (PWDs).
Increased funding for Free SHS, with a dedicated source of funding from an uncapped GETFund.
The distribution of free sanitary pads to female students in primary and secondary schools.
The National Health Insurance Levy (NHIL) has also been uncapped, allocating GH¢9.93 billion to support healthcare programs, including Free Primary Healthcare and the MahamaCares initiative for non-communicable diseases.
Addressing Energy and Exchange Rate Challenges
To tackle Ghana’s energy crisis and forex instability, the government plans to: Establish the Ghana Gold Board (GoldBod) to enhance forex reserves and stabilize the Cedi. Renegotiate power contracts with Independent Power Producers (IPPs) to reduce costs. Improve revenue collection in the energy sector through metering and private-sector involvement.
A Call for Unity and Support
Dr. Forson called on Parliament, businesses, civil society, and citizens to support the government’s bold economic reforms. He assured Ghanaians that despite the economic difficulties, the government is on course to restore stability and deliver on its promises.
“Together, we have the power to build a resilient economy that not only tackles today’s challenges but secures a prosperous future,” he emphasized.
Source: Clement Akoloh
