Accra: The Minister for Finance, Dr. Cassiel Ato Forson, has presented the 2025 budget statement, outlining the government's commitment to economic recovery and development amidst ongoing financial challenges. The budget presentation emphasized the government's dedication to fulfilling the International Monetary Fund (IMF) programme and restoring the nation's creditworthiness. Key allocations were announced across various sectors to bolster economic growth and support social interventions.
According to Ghana News Agency, the government has earmarked GHS 300 million for the National Apprenticeship Programme and GHS 51.3 million as a seed fund for the Women's Development Bank. In a bid to strengthen local governance, a minimum of 80% of the District Assembly Common Fund is to be sent directly to the Assemblies, with a total allocation of GHS 7.5 billion. Additionally, the National Health Insurance Scheme will receive GHS 10 billion for claims payment and essential medicine acquisition.
The budget includes GHS 3.5 billion for the Free Senior High School programme, supplemented by an additional GHS 4.1 billion from uncapping the GETFund. The uncapped GETFund will also provide dedicated funding for free tertiary education for persons with disabilities. The government has allocated GHS 292.4 million to distribute free sanitary pads to female students in primary and secondary schools, aiming to improve female education retention rates.
A significant portion of the budget, GHS 13.85 billion, is directed towards the big PUSH project for strategic infrastructure development. This initiative is expected to open up the economy and promote growth. In line with economic reforms, the government plans to restructure the Bank of Ghana to ensure operational independence and review the Labour and GIPC Acts to support a 24-hour economy initiative.
The government aims to enhance disposable incomes by abolishing the 10% betting tax, 1% e-levy, and emission tax. To further reduce expenditure, programmes like GhanaCARES, YouStart, and One District One Factory will be eliminated. A comprehensive audit of all arrears will be conducted, and the Public Procurement Act will be amended to ensure value for money.
Despite the challenges, the government is taking measures to stabilize the economy, including addressing the 19.2% depreciation of the Cedi against the US Dollar at the end of 2024. The projected revenue for the year stands at GHS 223.8 billion, representing 17.2% of GDP. The government will collaborate with stakeholders to reintroduce road tolls using a technology-driven approach.
The financial sector is set to receive GHS 10.45 billion to tackle legacy issues. Meanwhile, efforts are underway to complete the remaining debt restructuring as quickly as possible, with President Mahama committing to economic recovery through sound policy and structural reforms. The Fourth review of Ghana's US$3 billion Extended Credit Facility with the IMF is scheduled for April 2025.
In response to the economic downturn, the government pledges to cut waste and implement a three-pronged approach to restore fiscal responsibility. The Minister for Finance reassured citizens that the government is committed to fixing the economy and urged the public to patronize made-in-Ghana goods under the 24-hour economy initiative.
