Concerns Raised Over Credibility of Ghana’s 2025 Budget Figures
Dr. Mohammed Amin Adam, former Finance Minister, criticized the Ghanaian 2025 Budget’s credibility, particularly its fiscal projections and the government’s failure to acknowledge prior debt management successes. He called for public scrutiny and IMF intervention, indicating that improper data inclusion and methodology violations raise serious concerns about the state of Ghana’s economy.
Dr. Mohammed Amin Adam, the former Minister of Finance under the Akufo-Addo administration, has voiced grave concerns regarding the credibility of the figures presented in Ghana’s 2025 Budget. Delivered to Parliament by Finance Minister Dr. Cassiel Ato Baah Forson on March 11, 2025, the budget requires closer scrutiny, according to Dr. Amin Adam, especially concerning its fiscal projections.
During the budget announcement, a Gross Domestic Product (GDP) growth rate of at least 4.4% for 2025 was forecasted. However, the New Patriotic Party (NPP) Minority Caucus challenged this figure, arguing that it is lower than the 5.7% growth recorded in 2024 under the previous administration. Dr. Amin Adam stated, “Their projection of the fiscal balance for 2025 makes this budget not credible and requires serious scrutiny by the people of Ghana.”
The former Finance Minister criticized the current government for failing to recognize the improved debt management measures enacted by the previous NPP regime, which reduced Ghana’s debt-to-GDP ratio to 61.8% by the end of 2024, thus fostering a more favorable economic landscape. He remarked, “Already, the government has announced its return to the bond market, yet it has failed to acknowledge… the previous NPP government.”
Accusations were made against the incumbent government for manipulating fiscal data to substantiate claims about inheriting a mismanaged economy. Dr. Amin Adam alleged that GHS 49.2 billion in expenditure claims had been improperly inserted without verification, stating, “We warned of clandestine plans by the government to manipulate fiscal data.”
Moreover, he pointed out discrepancies in the government’s fiscal deficit figures, which reported a 7.6% of GDP deficit and a primary deficit at 3.6% of GDP. He emphasized that these inconsistencies should alarm Ghanaians as they indicate serious credibility issues in the fiscal data.
Dr. Amin Adam also noted that the Finance Minister’s use of unaudited data to present the budget could lead to major economic credibility problems. He explained, “It is curious that the Finance Minister would present a budget using unaudited fiscal data.”
Concerns were raised about the government’s failure to adhere to agreed methodologies with the International Monetary Fund (IMF) when calculating fiscal balances. Dr. Amin Adam criticized the inclusion of multi-year claims unrelated to statutory funds, stating, “What the government has classified as ‘unreleased claims’… does not fit into the agreed IMF methodology.”
In his concluding statements, Dr. Amin Adam urged the government to prioritize transparency and accountability to restore and maintain the credibility of Ghana’s economic data.
In summary, Dr. Mohammed Amin Adam has articulated significant reservations about the credibility of the 2025 Budget of Ghana, highlighting issues related to fiscal projections, debt management acknowledgment, and questionable data inclusions. He has called for increased scrutiny from both the public and the International Monetary Fund to ensure fiscal transparency and accountability, positing that these measures are crucial for restoring confidence in Ghana’s economic framework.
Original Source: www.gbcghanaonline.com
