Government Presents First Budget Under President Mahama Amid Economic Challenges

Accra: The Minister of Finance is expected to present the first budget of Mr. John Mahama after becoming the president on January 7, 2025, to parliament. The presentation is taking place barely a week after the government had put together some of the finest minds in economics and key private sector players to deliberate on the current economic challenges in the country, a situation the government has described as a crisis.According to Ghana News Agency, it is the hope of many that the budget and the economic policy statement for the year 2025 will reflect the solutions proposed at the end of the two-day event that focused on six thematic areas. These areas are macro-economic stability, restoring good governance, private sector-led growth, structural policy reforms, infrastructure development, and growth with diversification, export competitiveness, productivity, technology, and human well-being.Based on outputs captured in a communiqué, stakeholders are expecting the government to lead comprehensive and d urable public sector reforms to improve productivity and increase private sector participation and investment in the economy. The government is expected to restore macroeconomic stability and inject confidence in the economy by announcing major tax reforms to address revenue leakage, expand the tax net, and establish a credible medium-term expenditure framework that ensures adequate provision of funding for projects before commencement.To aggressively pursue inclusive and sustainable growth for economic transformation, stakeholders are expecting the government to review and introduce a streamlined tax system for agricultural inputs and outputs to promote efficiency, reduce burdens, and support sector growth. They want the government to champion policies that proactively address skill gaps by aligning current and projected developmental priorities.Stakeholders want the government to address the infrastructure deficit by introducing a range of investable asset classes in infrastructure through the Ghana Sto ck Exchange (GSE) and the Ghana Infrastructure Investment Fund (GIIF); revise Pension Fund investment regulations to align with infrastructure projects and ensure sustainable development and long-term economic growth. The government is expected to provide direction on the restructuring of the economy through effective execution of the Energy Sector Review Policy to improve efficiency, sustainability, and service delivery in the sector.Conducting a comprehensive review of ECG's operations and implementing necessary reforms to position it for potential private sector involvement; strengthening ECG's billing and collection systems while enforcing cost-cutting measures to improve operational efficiency and service delivery. Players in the energy sector are also expecting the announcement of moves to finalize the review of Independent Power Producers (IPP) contracts and renegotiate terms to lower power purchase costs.