Finance Minister Dr. Cassiel Ato Forson is set to deliver the 2025 Budget Statement and Economic Policy to Parliament today. This marks the first major fiscal policy announcement under President John Dramani Mahama’s administration and is expected to set the tone for the government’s economic agenda.
Key Focus Areas of the 2025 Budget
The 2025 budget is expected to introduce policies aimed at stabilizing the economy, promoting sustainable growth, and addressing Ghana’s fiscal challenges. Among the major highlights, the government aims to implement reforms that will ease financial burdens on individuals and businesses.
Tax Relief: A Step Towards Economic Ease
A significant focus of the budget will be tax reductions, a commitment the Mahama administration has emphasized. One of the most anticipated aspects is the proposed removal of several controversial taxes, including:
- Electronic Transfer Levy (E-Levy) – A tax on mobile money transactions that has been widely criticized.
- COVID-19 Health Levy – Introduced to support pandemic recovery but now seen as an additional financial burden.
- Betting Tax – Targeting online betting activities, which has been unpopular among industry players and users.
These tax removals are expected to provide relief to mobile money users, small business owners, and the broader public.
Job Creation and Economic Recovery
Beyond tax relief, the budget is also expected to prioritize job creation and economic recovery through the administration’s 24-hour Economy program. This initiative aims to boost employment opportunities and enhance productivity across multiple sectors, including manufacturing, technology, and services.
The government is likely to allocate funds for:
- Infrastructure development projects to stimulate local economies.
- Youth employment programs to tackle rising unemployment rates.
- SME support initiatives to foster entrepreneurship and innovation.
For more on Ghana’s economic policies, check out the Bank of Ghana’s official website for detailed financial reports.
Balancing Tax Cuts with Revenue Generation
While tax cuts offer relief, the government must balance them with revenue generation to sustain economic growth. Analysts expect the budget to introduce alternative revenue streams, such as:
- Expanding the tax base by formalizing the informal sector.
- Enhancing digital tax compliance mechanisms.
- Encouraging foreign direct investment through business-friendly policies.
Read more about Ghana’s economic performance on Ghana Statistical Service