Finance Minister Dr.Cassiel Ato Forson yesterday presented the 2025 budget which happens to be the first for the new administration.

Addressing Parliament, the minister revealed some tax cuts by the government, including the cancellation of the Emissions tax, E-levy, Betting Tax and COVID-19 levy among others.

By Edem Mensah-Tsotorme

Read below the full 2025 budget statement by the Finance Minister

2025 BUDGET SPEECH PRESENTED BY DR. CASSIEL ATO FORSON, MP MINISTER FOR FINANCE

Ministry of Finance 11th March, 2025
BUDGET SPEECH
SECTION ONE: INTRODUCTION
1. Right Honourable Speaker, on the authority of His Excellency the President, John Dramani Mahama and pursuant to Articles 179 and 180 of the 1992 Constitution of the Republic of Ghana, and sections 21
and 23 of the Public Financial Management Act, 2016 (Act 921), I respectfully present to this august House the Budget Statement and Economic Policy of Government for the 2025 Financial Year.

2. Today marks a moment of great significance and I have the singular honour to stand before this House to present, on behalf of His Excellency President John Dramani Mahama, following his extraordinary mandate, the maiden budget of his new administration.

3. I am deeply grateful to His Excellency the President for entrusting me with this responsibility.
4. Mr. Speaker, I beg to move that this House approves the Financial Policy of Government for the year ending 31st December 2025.

5. Respectfully, I also submit to this august House the following statutory reports as required by law:
i. the 2024 Annual Report on the Petroleum Funds, in line with Section 48 of the Petroleum Revenue Management Act, 2011 (Act 815), as amended;
ii.the 2024 Energy Sector Levies Report, in accordance with Section 6 of the Energy Sector
Levies Act, 2015 (Act 899); and

iii. the 2024 Annual Report on collection and utilisation of African Import Union Levy in line
with Section 7 of the African Union Import Levy Act, 2017 (Act 952).
6.Mr. Speaker, with this Budget, I will also be seeking a review of the following Acts to support the policies of government aimed at stabilizing the economy and promoting inclusive growth:
i.Petroleum Revenue Management Act, 2011 (Act 815);
ii.Ghana Infrastructure Investment Fund Act, 2014, (Act 877);
iii. Minerals Income Investment Fund Act, 2018 (Act 978);

iv.Energy Sector Levies Act, 2015, (Act 899);
v. Ghana Cocoa Board Act, 1984, PNDCL 81 (and its amendment);
vi. Earmark Funds Capping and Realignment Act, 2017 (Act 947);
vii. Public Procurement Authority Act, 2003 (Act 663) as amended with Act 914;
viii. Ghana Education Trust Fund (GETFund) Act, 2000 (Act 581);
ix. Fiscal Responsibility Act, 2018 (Act 982) and incorporate into a comprehensive Public Financial Management Act; and
x.Revenue Administration Act, 2016 (Act 915).
7. Mr. Speaker, we remain committed to the pursuit of our 24-Hour Economy policy aimed at stimulating
economic growth and job creation. This policy will contribute to addressing Ghana’s structural economic
challenges by creating an integrated, efficient and increasingly export-driven industrial economy that
fully utilises our national resources, capital and labour power.

8. We will be presenting the 24-Hour Economy policy to Parliament in due course. In this respect, the Labour
Act, the Ghana Investment Promotion Centre Act and other enabling legislations will be reviewed.
9. Mr. Speaker, as part of efforts to stabilise the Cedi through foreign exchange and gold reserve
accumulation, I will also submit a Bill to provide a legal framework for the establishment of the Ghana Gold Board for the consideration of this Honourable House.
10. Mr. Speaker, this Budget Speech is an abridged version of the 2025 Budget Statement and Economic Policy of Government.

11. I respectfully request the Hansard Department to capture the entire Budget Statement and Economic
Policy of Government for the year ending 31st December 2025.
12. Mr. Speaker, standing here evokes a sense of nostalgia as I reflect on my journey in public service. From my early days as a young parliamentarian in 2009, destiny has guided my path—from a backbencher and a member of the Finance Committee, to Deputy Minister for Finance, to Ranking Member of the Finance Committee, to Minority Leader, to Majority Leader and now, Minister responsible for Finance.

13. The invaluable experience I gained in this chamber has shaped my perspective, sharpened my focus, and prepared me for the task at hand. I fully commit to supporting the President to fix the economy.
14. I take this opportunity to extend my profound gratitude to the people of Ajumako Enyan Essiam, and
to Mr. Speaker and members of this House, for your unwavering support throughout the years.
15. Mr. Speaker, this esteemed House is a sanctuary of rigorous debate, principled cooperation, and at times, constructive disagreement—all in the pursuit of the greater good of our beloved country.
16. I look forward to working with you, the Right Honourable Speaker, and my colleagues on both sides
of the aisle, to reset Ghana’s economy through sound policy and structural reforms that will propel our
nation forward.
17. Mr. Speaker, there comes a time in a nation’s history when fundamental challenges must be confronted, difficult choices must be made, and a new course must be set for the future.
18. For Ghana, that defining moment is now!
19. President John Dramani Mahama made a commitment to reset Ghana for jobs, accountability and prosperity for all, as captured in the NDC Manifesto. In this regard, the theme for this budget is “Resetting the Economy for the Ghana we Want”.
20. Mr. Speaker, the democratic ideals we tirelessly fought for, are being hailed. Our democracy has been
consolidated with yet another peaceful transition of power.
21. That notwithstanding, our youth face an uncertain future with growing unemployment and hopelessness. This suggests that the dividends of democracy, such as economic prosperity and social justice, remain elusive.

22. Mr. Speaker, the choices before us are clear: we can either continue on a path of self-destruction by not confronting the problems or we can embark on a journey of fundamental reforms and transformation— one that resets our economic model, redefines our priorities, honours our social contract and provides opportunities for all.
23. Mr. Speaker, President Mahama has chosen the path of reforms and transformation. He will fix the
economy. He will restore hope. And lead us to build the Ghana we want together.

24. This budget was preceded by the National Economic Dialogue on the theme “Resetting Ghana – Building the Economy We Want Together” on 3rd and 4th March, 2025. Through this consensus-building dialogue, the people demanded decisive action and real solutions to the severe challenges that plaque us.
25. Mr. Speaker, the 2025 budget is the culmination of the true aspirations, felt needs and genuine desires of the people of Ghana, expressed through engagements with diverse stakeholders.
26. As part of our broad consultations ahead of the budget, we recently engaged traders at major trading centers, including the Makola Market, to listen to their concerns, gauge their expectations and elicit their inputs.
27. Mr. Speaker, the extensive consultations revealed that the overriding concern among Ghanaian traders and the business community, remains price and exchange rate instability.
28. Apart from eroding their working capital, exchange rate volatilities make effective business planning impossible and increase the cost of doing business.

29. This budget outlines far-reaching measures which will be implemented in close collaboration with the Bank of Ghana, to effectively and efficiently manage the exchange rate and inflation.
30. Mr. Speaker, we also engaged the youth of Ghana in a dialogue on new media as part of our pre-budget consultations.
31. Mr. Speaker, during my engagement with the youth it was revealed that 321 pharmacists who were
employed since June 2023 have not received their salaries. We will take urgent steps to remedy this
situation.
32. This conversation was an eye-opening experience – one that strengthened my belief that the voices of the youth matter in designing policies that directly or indirectly impact their lives and future.
33. Mr. Speaker, in 2016, I came to this Chamber, on behalf of the then Minister for Finance, Honourable Seth Terkper, and led the passage of the Public Financial Management Act (2016) Act 921 to deploy a robust Public Financial Management (PFM) System.
34. Even though Ghana’s Public Financial Management Act remains one of the best in the world, its poor
implementation has rendered our Public Financial Management system weak, allowing for abuse and
costly infractions.

35. Mr. Speaker, President Mahama’s Government is committed to the full implementation of this critical
legislation.
36. Accordingly, we will enforce the sanctions regime, link contracting and public procurement to budgetary provisions in the Medium-Term Expenditure Framework and seek parliamentary approval for all multi-year commitments as required by law.

37. We will comply with procurement processes and link them to approved Budgets. We will also respect the limits of the appropriation approved by this august House.
38. We will rationalise the management of compensation of employees, including conducting headcounts.
39. Mr. Speaker, I now turn my attention to:

i. the state of the Ghanaian economy in 2024;
ii. macroeconomic policies, targets, and measures for 2025 and the medium-term;
iii. policy initiatives and budget allocations; and

iv.sectoral performance and outlook.

SECTION TWO: THE STATE OF THE GHANAIAN ECONOMY IN 2024
40. Mr. Speaker, at this point let me now focus on the state Ghanaian economy.
41. Mr. Speaker, we inherited an economy in deep crisis, hard hit with debt and beset by other fiscal
challenges such as large accumulation of MDA arrears/payables, energy sector financing shortfalls,
and large fiscal risks from the cocoa and financial sectors.
42. Weak commitment control systems and reckless public spending have reversed the progress made in
fiscal consolidation even under the IMF-supported Programme which commenced in 2023.
Status of IMF-supported Programme
43. Mr. Speaker, notwithstanding the gains made under the IMF-supported Programme, that was achieved through the painful sacrifice of domestic bondholders, external creditors and taxpayers, the
economy remains in distress.
44. Mr. Speaker, key performance indicators to be assessed by the IMF staff in the upcoming 4th review
of the Programme scheduled for April 2025 such as the primary balance (commitment), inflation, and
social protection spending for end-December 2024, are likely missed.
45. In addition, all structural benchmarks due by end December 2024 are likely missed.
46. Mr. Speaker, inflation worsened in 2024 from 23.2%
in 2023 to 23.8% in 2024.
47. The 2024 end-period inflation also exceeded the budget target of 15% by 8.8 percentage points and
the IMF central target of 18% by 5.8 percentage points. This has triggered a discussion with the IMF
under the Monetary Policy Consultation Clause.
48. Mr. Speaker, the primary balance on commitment basis worsened from a deficit of 0.2% of GDP in 2023 to a deficit of 3.9% in 2024.
49. Mr. Speaker, the primary balance on commitment basis target for 2024 was a surplus of 0.5% of GDP.
Sadly, the previous government recorded a deficit of 3.9% of GDP. This represents a slippage of a
whopping 4.4 percentage points.

Update on Arrears/Payable Accumulation
50. Mr. Speaker, at the end of December 2024, total central government arrears/payables amounted to
GH¢67.5 billion, representing 5.2% of GDP. with the road sector alone accounting for GH¢21 billion.
51. Mr. Speaker, when I assumed office on 23rd January 2025, my office was inundated with requests for
payment from many government contractors and suppliers.
52. To ascertain the total arrears/payables (outstanding claims) for all MDAs, the Ministry of Finance formally requested the MDAs on 28th January 2025 to submit information on all arrears/payables (outstanding claims) as at end-2024.
53. Subsequent to this, the Ministry of Finance held special hearings with the MDAs to validate the
arrears/payables submitted.
54. The responses from the MDAs and the validation revealed that a staggering amount of GH¢67.5 billion is owed to government contractors and suppliers.
55. This consists of MDA outstanding Interim Payment Certificates and invoices of GH¢49.2 billion and
outstanding Bank Transfer Advice of GH¢18.3 billion at the Controller and Accountant-General’s
Department.
56. Mr. Speaker, this total central government arrears/payables excludes the following:

. US$1.73 billion owed to Independent Power Producers (IPPs);
ii. GH¢68 billion owed by the Electricity Company of Ghana (ECG);
iii. GH¢32 billion owed by the Ghana Cocoa Board (COCOBOD); and
iv.GH¢5.75 billion owed by Road Fund.
57. Mr. Speaker, the Bank of Ghana is also asking for a bailout of about GH¢53 billion to address their
negative equity position.
58. Mr. Speaker, as part of measures to address these mounting accumulated arrears/payables, we have
commissioned an audit of these arrears/payables and guarantee value for money before payment.
59. Mr. Speaker, in addition to the GH¢67.5 billion in arrears/payables, the validation process also
revealed that MDAs have committed government through contract awards in excess of GH¢194 billion,
about 16.5% of GDP as at end-2024, with the road sector alone accounting for over GH¢100 billion.
60. Mr. Speaker, most of these contracts were awarded without commencement certificates and
authorization, and without budgetary provision, a blatant violation of the Public Financial Management
Act, 2016 (Act 921).
Update on Debt Service Obligations
61. Mr. Speaker, apart from the huge arrears and commitments, our fiscal situation is further
complicated by huge bullet debt service and constrained financing options.
62. Currently, the Government’s options to financing the budget is limited to only the treasury bill market following the debt restructuring programme.
63. Moreover, the forthcoming debt service of both Domestic and Eurobond debt obligations will have
profound implications for fiscal sustainability and balance of payments.
64. Mr. Speaker, the Domestic Debt Exchange Programme has resulted in huge domestic debt
service payments. Over the next four years, the country is expected to pay about GH¢150.3 billion, representing 11.6% of GDP in domestic debt service obligation alone, of which 73.3% due in 2027
(GH¢57.6 billion) and 2028 (GH¢52.5 billion).
65. The debt service obligations of 2027 and 2028 are major humps. These humps are cancerous and pose significant risk to the economy but we shall fix it!
66. Our debt service obligation for this financial year is equally burdensome with significant humps in
February (GH¢9.9 billion), July (GH¢6.2 billion) and August (GH¢10.1 billion).
67. Mr. Speaker, the fiscal challenges are further compounded by the significant short-term treasury
bill maturities that we have inherited.
68. These obligations, totaling about GH¢111.1 billion, require rollover on a weekly basis, placing additional pressure on cash flow and liquidity requirements.
69. Mr. Speaker, beyond domestic maturities, Ghana faces significant external debt service obligations
over the next four years totaling US$8.7 billion, representing 10.9% of GDP., with heavy concentration in 2027 and 2028.

70. Again, 55% of the total external debt service of US$8.7 billion is due to be serviced in 2027 (US$2.5
billion) and 2028 (US$2.4 billion).
71. It seems the debt restructuring undertaken by the previous administration was designed to be
2027/2028-heavy.
72. Mr. Speaker, in spite of all these upcoming domestic and external debt service obligations, no buffers
were built to cushion these unprecedented debt service burdens.
73. Mr. Speaker, as at 7th January 2025, the debt service reserve dollar account (Sinking Fund) had a balance of about US$64,000 against US$319 million in 2016 and the debt service reserve Cedi account had GH¢143 million against GH¢430 million in 2016.
Stalled Projects under Bilateral Loans
74. Mr. Speaker, due to the bilateral creditor debt restructuring undertaken by the previous
administration, a staggering number of 55 projects have come to a halt.

75. This leaves a massive amount of about US$3 billion in undisbursed loans and about US$300 million in outstanding interim payment certificates (IPCs).
76. Some of these projects are Effia Nkwanta Regional Hospital, Kejetia Market Phase 2, Bolgatanga-Bawku Pulimakom road project and Tema-Aflao road project.
77. Delayed payments and demobilization from site could result in cost over-runs of about US$1.1 billion.
78. Mr. Speaker, the IMF-supported Programme imposes an annual disbursement ceiling of US$250 million for official bilateral loans. This constraint means that it will take a minimum of 12 years from the recommencement of disbursements to complete these 55 stalled projects.
79. We will be engaging, in the coming days, to resolve this.

Energy Sector Fiscal Risks
80. Mr. Speaker, the increasing energy sector financing shortfalls is posing significant fiscal risks to the
country’s finances.
81. In 2024, the MoF supported the energy sector with payments of about GH¢20.8 billion. These resources could have been used for job creation and other development programmes like roads, schools, and hospitals if the sector inefficiencies were resolved.
82. Mr. Speaker, a recent exercise conducted by the energy sector financing modelling team under the
Energy Sector Recovery Programme (ESRP) revealed that the Business as Usual (BAU) energy sector
financing shortfall has increased significantly to about GH¢35 billion for 2025, even after the rather large spending for the sector’s shortfall in 2024.
83. Mr. Speaker, more importantly, the shortfall for the period 2023-2026 has been estimated at about
GH¢140 billion. This is over 20 times more than the allocation for Goods and Services for all MDAs for
2025.
84. Mr. Speaker, in addition to the energy sector shortfall which relates to current invoices, there are large unpaid legacy arrears due the Independent Power Producers (IPPs). The legacy arrears which stood at US$1.73 billion at the end of 2024.

Cocoa Sector Fiscal Risks
85. Mr. Speaker, the cocoa sector which has long beenthe backbone of the Ghanaian economy is sadly on its knees owing to gross mismanagement in the last few years and is now unable to support the economy as it should despite record-high world market prices.
86. The sector faces declining output and financing challenges characterized by unsustainable debt, roll
over contracts and quasi-fiscal expenditures including cocoa roads, a non-core function.
87. Mr. Speaker, cocoa production has dropped by nearly 50% over the past three years. In the 2023/2024 crop season, COCOBOD was unable to supply 330,000 tonnes of cocoa to meet its full contractual obligation. This under-supply has been rolled over for subsequent supply by the new administration.
88. Mr. Speaker, these 2023/24 forward sales contracts locked-in at lower prices than current market rates, have resulted in revenue losses of US$840 million for both COCOBOD and impoverished the Ghanaian farmer.
89. Mr. Speaker, the rolled-over contracts will result in additional losses of US$495 million this year. This
implies that for every tonne of cocoa delivered this year in fulfilment of the rolled-over contracts,
COCOBOD and the Ghanaian farmer will lose US$4,000 in revenue.
90. There are also risks in relation to market price differentials and smuggling. The large gap between
market prices and farmer payments encourages smuggling and threatens long-term sustainability of
the industry.
91. Mr. Speaker, COCOBOD’s outstanding debt amounts to GH¢32 billion, of which GH¢11.92 billion is due to be paid in 2025.
92. Outstanding cocoa road contracts reached GH¢21 billion (US$1.3 billion) in 2024, of which only GH¢4.4 billion has been accounted for in COCOBOD financial statements.
Financial Sector Risks
93. Mr. Speaker, the financial sector still struggles even after spending GH¢30.3 billion in the financial sector clean-up exercise by the end of 2024. This includes GH¢26.9 billion spending for the banks, Savings & Loans companies, Financial Houses, Micro-Finance Institutions, and Asset Management companies.

94. Mr. Speaker, the sector requires GH¢10.45 billion to address the remaining financial sector legacy issues and emerging risks.
95. In addition, an amount of GH¢2.2 billion is required to fully capitalise NIB and ADB.
2024 Fiscal Performance
96. Mr. Speaker, I will now update the House on fiscal
performance for the 2024 financial year.
97. Mr. Speaker, the fiscal performance in 2024 was characterized by improved revenue collection but
with significant expenditure overruns. In addition, large arrears/payables were accumulated.
98. In summary, Mr. Speaker, provisional data show that:

i. the primary balance on commitment basis, the key fiscal anchor, worsened from a deficit of
0.2% of GDP at the end of 2023 to a deficit of 3.9% of GDP at the end of 2024, that is 4.4 percentage points worse than the target surplus of 0.5% of GDP;
ii. on cash basis, the primary balance was a deficit of 1.2% of GDP against a target deficit of 0.6%;
iii.the overall fiscal balance on commitment basis for 2024 was a deficit of 7.9% of GDP against a
target deficit of 4.2% whilst the Overall Fiscal Balance on cash basis was a deficit of 5.2% of GDP against a target of 5.3%;
iv.total revenue and grants amounted to GH¢186.6 billion or 15.9% of GDP, 5.3 percent
above the revised target of GH¢177.2 billion or 17.4% of GDP. The performance was mainly driven by the higher-than-programmed Oil and Gas receipts and higher non-oil tax revenue;
v. total expenditure on commitment basis, including discrepancy amounted to GH¢279.2 billion or 23.7% of GDP. This is 27.1 percent above the budgetary provision of GH¢219.7 billion or 21.5% of GDP;
vi. Primary Expenditure on commitment basis, including discrepancy amounted to GH¢232.4
billion or 19.8% of GDP. This is 35.3 percent above the target of GH¢171.7 billion or 16.8
percent of GDP;
vii. all expenditure lines exceeded their respective targets for the period except for Interest
Payments, Goods and Services and Other Expenditure; and
viii. the discrepancy for 2024, being unclassified expenditure, was GH¢3.8 billion as compared
to a discrepancy of GH¢12.9 billion in 2023.
Public Debt Stock
99. Mr. Speaker, as at end December 2024, provisional data indicate that gross central government and
guaranteed debt was GH¢726. 7 billion from GH¢610.0 billion in 2023. This represents 61.8
percent of GDP in 2024 compared to 68.7 percent of GDP in 2023.
100. Mr. Speaker, the reduction in debt-to-GDP ratio and the dollar component of our debt stock is as a result of the 37% haircut on the principal of the Eurobond debt under the debt restructuring programme.

Ghana’s Debt Restructuring Update
101. Mr. Speaker, you may recall that the government commenced the debt restructuring programme in
2022 to restore debt sustainability and economic stability.

102. Mr. Speaker, as of now, the restructuring process is approximately 93 percent completed. The remaining 7 percent relates to debt of US$2.7 billion owed to commercial creditors.
103. We are committed to completing the remaining debt restructuring as soon as possible.
Real Sector Developments in 2024
104. Mr. Speaker, provisional 2024 GDP statistics published by the Ghana Statistical Service (GSS) on
10th March 2025 shows that overall real GDP grew by 5.7 percent in 2024, compared to the growth rate of 3.1 percent recorded over the same period 2023. The key driver of this growth was largely mining and
quarrying, mainly gold, which recorded a growth of 19.1%.
105. Mr. Speaker, non-oil GDP grew by 6.0 percent in 2024, compared with a growth rate of 3.6 percent
recorded in 2023.

External Sector Developments
106. Mr. Speaker, Gross International Reserves (GIR) increased to a stock position of US$8.98 billion at the end of 2024 and was enough to cover 4 months of imports, exceeding the target floor of 3 months of imports cover.
107. By the end of 2024, the currency had depreciated by 19.2 percent, 17.8 percent and 13.7 percent against the US dollar, British Pound and Euro respectively.

SECTION THREE: 2025 AND MEDIUM-TERM POLICY OBJECTIVES AND TARGETS
108. Mr. Speaker, it is what it is. The state of our economy is troubling, but we will fix it! It will require some sacrifices, truthfulness, transparency and discipline.
109. We will take strong measures to confront the situation head-on.
110. Mr. Speaker, the sacrifice must come from all stakeholders, beginning with the government.
111. His Excellency President Mahama appreciates this and has led the charge by significantly downsizing his government. From the elephant 88 to 60 ministers.
112. He has also reduced the number of government ministries from 30 to 23.
113. Mr. Speaker, as part of its contribution to the resetting agenda, organised labour has followed suit
by working with government and employers’ association to agree on a modest increase in base pay
and minimum wage for 2025.
114. On behalf of His Excellency the President, I would like to express our profound gratitude to organised labour and employers.

115. Mr. Speaker, ordinary Ghanaians have also sacrificed by enduring the negative impact of severe currency depreciation, hyperinflation, high food inflation, principal and interest haircuts, soaring interest rates, among others.
116. Mr. Speaker, it is now time for the peoples’ representatives, the Parliament of Ghana and the
judiciary to follow suit.
117. I would also like to call on all other stakeholders, including the business community, faith-based
organisations, academia and civil society to support this national call.
118. Mr. Speaker, our immediate task is to reset our nation to restore good governance, reduce the
excruciating suffering of our people and set our country on a trajectory of economic transformation.
119. Mr. Speaker, our vision is to build a prosperous and a democratic state anchored on the principles of
freedom and justice, providing equal opportunities for all. Through this vision, we will work together to
build the Ghana we all want.

120. Mr. Speaker, the resetting agenda will be anchored on:
i. restoring hope in our democracy, renewing trust in public officials, and helping every
Ghanaian attain their full potential;
ii. offering a trusted hand to the vulnerable, particularly women and youth and creating a
new Ghana for coming generations;

iii. and stimulating demand by patronising made-in Ghana goods under the 24-hour Economy
Policy.
121. Mr. Speaker, I would like to first present the government’s immediate and strong measures to
address the current challenges we are confronted with, followed by the medium-term vision, policy
objectives and targets.
Fiscal Policy Objectives
122. Mr. Speaker, consistent with Section 14 of the Public Financial Management Act, 2016 (Act 921), the fiscal policy objectives of this government is to support the economic transformation agenda to ensure the macroeconomic stability of the country within the macroeconomic and fiscal framework.
123. More specifically, the fiscal policy objectives of government include:

i. rationalising government expenditure and eliminating wasteful expenditure;
ii. optimising domestic revenue mobilisation through the broadening of the tax base,
increased non-tax revenue collection, adopting enhanced tax compliance measures, and modernisation of tax administration through digital technology;
iii. increasing the share of domestic capital expenditure to spur economic growth and job
creation;

iv.reducing public debt to sustainable levels and adopting prudent debt management practices
to support debt sustainability;
v. reducing the fiscal deficit progressively in accordance with an amended Fiscal Responsibility Act to promote fiscal and debt sustainability; and
vi. restoring confidence in Ghana’s economy.
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124. Mr. Speaker, our approach will be to foster economic growth, accelerate job creation, reduce inflation and stabilize the cedi.
125. To achieve this, it is crucial that we establish macroeconomic stability and ensure debt
sustainability.
126. Mr. Speaker, we are confident that by prioritizing these foundational elements, we can cultivate an
environment where individuals can prosper and businesses can thrive in Ghana.
127. Mr. Speaker, Ghanaians, through the recent National Economic Dialogue, have expressed a clear desire for the fiscal deficit and public debt to be reduced through cuts in government spending rather than through only tax measures. We wholeheartedly agree!
128. Mr. Speaker, going forward, we will tailor our expenditures to align with our fiscal realities. After
all, “whoever pays off their debt gets rich”.

129. Mr. Speaker, we are poised to implement a three pronged approach to achieve our objectives,
beginning with this budget:
i. Recalibrate the fiscal adjustment. We believe that prioritizing a spending-led fiscal adjustment can initiate a positive cycle. Firstly, it will help lower inflation and curb the depreciation of the cedi. Secondly, it will lessen government’s reliance on borrowing, which in turn will reduce the crowding out of
the private sector and lower interest rates.
Lastly, this approach will ease the strain on monetary policy, allowing the Bank of Ghana greater flexibility to reduce monetary policy rates, ultimately resulting in lower bank lending rates;
ii. Deliver a shock therapy. We are implementing a form of “shock therapy” to the economy by
making significant spending cuts this year, thereby reducing the government’s financing
needs and frontloading fiscal adjustment. This is the downpayment for our policy credibility
and creditworthiness;
iii. Restore fiscal responsibility. Moving forward, we will enhance public financial management

by: i) Empowering ministers to effectively manage their budgets; ii) Ensuring strict compliance with the commencement certificate system; iii) Passing and enforcing the revised Fiscal Responsibility Act; and iv)
Enforcing sanctions for non-compliance.
2025 Macroeconomic Targets
130. Mr. Speaker, in pursuit of the overarching macroeconomic objectives, the following macroeconomic targets have been set for the 2025 fiscal year:

i. Overall Real GDP growth of at least 4.4 percent;
ii. Non-Oil Real GDP growth of at least 5.3 percent;
iii. End-Period inflation rate of 11.9 percent;
iv. Primary Balance on Commitment basis at a surplus of 1.5 percent of GDP; and
v.Gross International Reserves (including oil funds and encumbered/pledged assets) to cover not less than 3 months of imports.

Addressing Inflation and Exchange Rate Pressures
131. Mr. Speaker, government will implement a number of measures to complement Bank of Ghana’s
monetary and exchange rate policies to stabilize inflation and the exchange rate.
132. Mr. Speaker, the measures to stabilize the exchange
rate include the following:

i. the establishment of the GoldBod to enhance the generation and accumulation forex to support the stability of the cedi;
ii. the BoG will continue to implement its FX forward auctions to support the stability of the Cedi;
iii. government’s strong fiscal consolidation through the reduction in public sector spending and the fiscal deficit will reduce pressures on the exchange rate; and
iv. our import substitution drive under the 24 Hour economy involving the domestic
production of key products originally imported will reduce imports and related FX
requirement, boding well for FX stability.

133. Mr. Speaker, we are addressing the inflation problem through a number of measures including the
following:

i. specific intervention including the Agriculture for Economic Transformation Agenda is
expected to increase food production and reduce food inflation.
ii. government will implement policies that target items with large weights in the CPI basket such
as transportation and utilities to reduce their prices;
iii.our aggressive fiscal consolidation drive aimed at reducing the fiscal deficit and borrowing, will
contribute significantly to reducing inflationary
pressures;
iv our strategy to Improve exchange rate stability will reduce imported inflation and fuel prices;
and
v the BoG will maintain an appropriate monetary policy stance and use its liquidity management
interventions to support the disinflation process.

2025 Fiscal Measures
134. Mr. Speaker, to achieve our expenditure-led fiscal consolidation objectives, we will implement a
number of fiscal measures.
2025 Expenditure Measures
135. Mr. Speaker, the following expenditure measures will be implemented in the 2025 fiscal year and the medium-term to support the fiscal consolidation agenda:

i. conduct a comprehensive audit to validate the quantum of arrears/payables and
commitments as at 31st December 2024
before payment;
ii. the mandatory use of the “Blanket Purchase Order” to capture multi-year
commitments/contracts in line with Medium Term Expenditure Framework ceilings;

iii.amend the Public Procurement Act to provide for an Independent Value-for-Mone Office to scrutinize government procurements above a threshold to be determined by Parliament;

iv. amend the Public Procurement Act to make commencement certificates and budgetary
provisions prerequisites for all procurements to be paid by central government;
v. fully integrate GHANEPS with GIFMIS to ensure that only MDAs’ projects and purchase orders that have approved budgets and allotments can obtain procurement approvals;
vi. operationalise the Compliance Desk at the Ministry of Finance to monitor reports on
commitments and arrears accumulation to enable them, among others, publish a PFM
league table for compliance;
vii. strictly enforce sanctions under sections 96 to 98 of PFM Act for breaches of the PFM Act,
especially those that relate to arrears accumulation and commitment control;
viii cut wasteful expenditures on inefficient and duplicative programmes to reduce expenditure under the fiscal consolidation programme. In this regard, selected expenditure items including the GhanaCARES, the YouStart and the One District One Factory will be eliminated;
ix reassign the functions of the Development Authorities (CODA, NDA, and MBDA) to the
District Assemblies;
x amend the Petroleum Revenue Management Act, 2011 (Act 815) (PRMA) to allocate all ABFA
resources for infrastructure projects;
xi National Health Insurance Levy (NHIL) will receive full allocation under the Earmarked
Funds Capping and Realignment Act, 2017 (Act 947);
xii the Road Fund will receive full allocation under the Earmarked Funds Capping and
Realignment Act, 2017 (Act 947);
xiii reduce the GNPC’s share of net Carried & Participating Interest (CAPI) from 30% to 15%
and fully restore transfers to GNPC under the Earmarked Funds Capping and Realignment
Act, 2017 (Act 947);
xiv amend the Mineral Income and Investment Fund (MIIF) Act to ensure the 80% Mineral
Royalties originally maintained by MIIF is transferred to the Consolidated Fund for infrastructure development; and

xv strengthen social protection through the implementation of new social intervention
programmes including the No-Academic-Fee policy for all first-year students in public
tertiary institutions under the ‘No-Fees-Stress’ initiative, the Free Tertiary Education for Persons with Disability (PWDs), Free Primary Healthcare, the Ghana Medical Care Trust (MahamaCares), and the Free Sanitary Pads for schoolgirls.
2025 Energy Sector Measures
136. Mr. Speaker, to address the energy sector challenges, including reducing the quantum of the large energy sector shortfalls, the following energy sector recovery programme interventions will be
implemented:

i.ECG and NEDCo will implement a number of measures including metering and the implementation of a Private Sector Participation (PSP) strategy to improve collection efficiency;
ii. implement the Liquid Fuel-to-Gas Swap through an increase in N-Gas supply from the
60 mmsc per day to 100 mmsc to take advantage of cheaper gas prices; and
iii. complete the IPP capacity renegotiations to generate some savings through negotiated
lower fixed capacity charges and variable
O&M charges.
137. Mr. Speaker, as agreed with the IMF by the previous administration, we will implement the following ESRP measures to achieve the Structural Benchmark of the
IMF programme:

i. PURC will continue to implement the Quarterly Tariff Adjustment to reflect changes
in inflation, exchange rate, and generation mix;

ii. PURC will also undertake the major tariff adjustment which will be due in the 4th quarter of 2025 to reflect capacity charges, additional liquid fuel usage, and additional capex;

Former Finance Minister and Member of Parliament for  Karaga, Dr.Amin Adam has shockingly revealed that the erstwhile New Patriotic Party Administration did not collect any betting tax.

It would be recalled that the betting tax, introduced under the previous government, imposed a 10% withholding tax on winnings from sports betting and lottery.

However, during a press briefing by the minority after the 2025 budget presentation, former Finance Minister Dr.Amin Adam said it was unconscienable for the government to say it has abolished the betting tax.

He said, “Ladies and gentlemen, the betting tax that they said they have abolished, we never collected betting tax.”

“we never implemented the betting tax. So to come and tell Ghanaians you have abolished something that was not implemented is to deceive the people of Ghana,” the former Finance Minister shockingly revealed.

When the tax was introduced, the Ghana Revenue Authority (GRA) outlined that this withholding tax will be automatically deducted at the point of payout for all betting, games, and lottery wins.

The tax was expected to enhance domestic tax revenue mobilization, considering Ghana’s comparatively low tax-to-GDP ratio within the sub-region.

However, the new tax initiative , since its inception, has faced criticism from the younger generation in Ghana, who argue that betting and lottery winnings often serve as alternative income sources for the unemployed.