Key Highlights from Ghana’s 2025 Budget: Economic Resurgence…

Ghana’s 2025 budget, presented by Finance Minister Dr. Casiel Ato Forson, outlines the government’s plan to promote economic recovery by abolishing taxes, enhancing healthcare and education funding, and reintroducing road tolls using technology. The budget allocates GHS 290 billion and includes measures for infrastructure and social programs. The government aims for a growth rate of 4.4% in 2025, emphasizing fiscal efficiency and responsiveness to citizens’ needs.

In his presentation to the House of Parliament, Ghana’s Finance Minister, Dr. Casiel Ato Forson, outlined the 2025 budget, declaring it a critical measure to rejuvenate the economy after challenges faced under the previous administration. He emphasized, “this budget will reset the country’s economy after the former government scattered everything,” and described it as a “budget of growth and prosperity.”

The government has decided to abolish several taxes, including a 10% betting tax and a 1% Covid-19 levy on electronic transactions. These removals are part of the New Democratic Congress (NDC)’s campaign promises aimed at alleviating financial burdens on citizens. Dr. Forson noted the significant public opposition to some previous levies, indicating a proactive response to citizens’ concerns.

The total budget allocation for 2025 is GHS 290 billion ($19 billion). Allocation highlights include GHS 13.85 billion for infrastructure projects and GHS 9.9 billion for the National Health Insurance Scheme to ensure free healthcare for all citizens. The government also plans to support educational initiatives with GHS 3.5 billion dedicated to the free Senior High School policy and provisions for free sanitary products for female students.

In respect to economic revitalization, the government has also included allocations aimed at alleviating the impact of natural disasters and supporting small-scale mining initiatives. Additional measures include a focus on job creation through apprenticeships and skills training programs.

Following the abolition of road tolls in 2021, the government has reversed this decision and plans to reintroduce technology-enabled toll collection to generate revenue. Dr. Forson explained that this initiative is part of a broader strategy to enhance fiscal resources during economic recovery.

Furthermore, the NDC administration has vowed to reduce government expenditure significantly by limiting the number of ministers to 60. This decision reflects a commitment to efficiency and a responsible use of taxpayer money, as outlined by Dr. Forson who stated that this smaller cabinet will help “cut wastage and leakage in the system.”

Economic projections from the Ghana Statistical Service indicate a growth target of 4.4% for 2025, based on comprehensive macroeconomic strategies aimed at improving the financial landscape. The Minister plans to unveil a comprehensive 24-hour economy policy in the near future to bolster employment opportunities and promote economic activity.

In summary, the 2025 budget presented by President John Mahama’s government represents significant reforms aimed at revitalizing the Ghanaian economy. By abolishing several taxes, enhancing health and education funding, and committing to efficient government spending, the administration seeks to foster growth and prosperity. The inclusion of technological advancements in revenue collection further highlights the government’s innovative approach toward economic recovery. Through these strategic measures, the government aims to create a sustainable economic environment, ultimately targeting a growth rate of 4.4% for the year.

Original Source: www.bbc.com