Ghana’s 2025 Budget: Mahama Administration Unveils Bold Economic Reforms
Accra, March 11, 2025 – Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has presented the 2025 Budget Statement and Economic Policy to Parliament, outlining bold reforms aimed at stabilizing the economy, reducing public debt, and driving job creation under the theme “Resetting the Economy for the Ghana We Want.”
Inherited Economic Challenges
In his speech, Dr. Forson painted a grim picture of Ghana’s economic situation, citing high debt levels, unpaid government arrears, a struggling energy sector, and rising inflation. The government inherited GH¢67.5 billion in outstanding arrears, with additional debts owed to the electricity sector, the Ghana Cocoa Board (COCOBOD), and independent power producers. Inflation increased from 23.2% in 2023 to 23.8% in 2024, exceeding budget targets.
Key Policy Announcements
To address these challenges, the government is implementing several measures:
- 24-Hour Economy – A new initiative to boost production and job creation by allowing businesses to operate round-the-clock.
- GoldBod Initiative – Establishment of the Ghana Gold Board (GoldBod) to manage the country’s gold resources and stabilize the cedi.
- Debt Management – Strengthening the country’s financial standing by reopening the domestic bond market and implementing liability management strategies.
- Infrastructure Investments – Launch of the $10 billion Big Push Programme to drive strategic infrastructural development.
Tax Reliefs and Revenue Measures
The government has announced the abolition of several unpopular taxes, including:
- The E-Levy (1% tax on electronic transactions)
- The Betting Tax (10% withholding tax on lottery winnings)
- The Emission Levy on industries and vehicles
- VAT on motor vehicle insurance
To compensate for revenue losses, the administration will increase the Growth & Sustainability Levy on mining companies from 1% to 3% and reinstate road tolls using a technology-driven approach.
Social Interventions
Dr. Forson highlighted several social protection initiatives, including:
- No-Academic-Fee Policy for first-year students in public tertiary institutions
- Free tertiary education for Persons with Disabilities (PWDs)
- Free sanitary pads for schoolgirls
- Increased budget for school feeding and capitation grants
- GH¢9.93 billion for the National Health Insurance Scheme (NHIS), including support for free primary healthcare
Macroeconomic Targets for 2025
The government is projecting:
- 4.0% GDP growth
- End-year inflation rate of 11.9%
- Primary surplus of 1.5% of GDP
- Foreign reserves covering at least three months of imports
Government’s Call for Support
Dr. Forson urged all Ghanaians to support the government’s economic recovery efforts, emphasizing that “Ghana’s economy is in distress, but we will fix it!” He also commended President John Dramani Mahama for downsizing government ministries from 30 to 23 and reducing ministerial positions from 88 to 60 as part of cost-cutting measures.
The 2025 Budget marks the Mahama administration’s first major step toward economic recovery, signaling a shift in fiscal policy aimed at restoring confidence in Ghana’s economy.
