Ghana’s Parliament has officially approved the 2025 Mini-Budget, amounting to GHC68.13 billion, after comprehensive deliberations and scrutiny by the Finance Committee. This budget is set to fund essential government operations during the first quarter of 2025, pending the submission of a substantive budget by the incoming Mahama administration.
The approval follows the presentation of the Expenditure in Advance of Appropriation for January to March 2025 by Finance Minister Dr. Mohammed Amin Adam on January 2, 2025.
The Mini-Budget was subsequently referred to the Joint Committee on Budget and Finance for review and recommendations in accordance with Article 180 of the 1992 Constitution and the Standing Orders of Parliament. After careful consideration, Parliament endorsed the budget, recognizing its significance in ensuring the continuity of government functions during a politically transitional period.
Key highlights of the Mini-Budget include projected total revenue and grants of GHC42.54 billion, representing 3.5% of Ghana’s GDP. This revenue is broken down into GHC40.67 billion from domestic revenue, GHC1.87 billion from tax revenue, GHC68.65 million from grants, and GHC1.04 billion from social security contributions and other sources. The expenditure provisions prioritize critical areas such as healthcare, education, infrastructure development, and tax refunds, with GHC2.37 billion allocated for tax refunds alone.
The approval process for the Mini-Budget was characterized by intense debate, reflecting the contrasting priorities of the majority and minority parties in Parliament. Key points of contention included the government’s spending priorities in healthcare, education, and infrastructure, as well as strategies for enhancing revenue mobilization. The minority accused the Finance Minister of deliberately delaying the presentation of the Mini-Budget, while the majority dismissed these claims, emphasizing the necessity of the budget in sustaining government operations and averting a shutdown.
Despite the political tensions, the Mini-Budget underscores the government’s commitment to addressing Ghana’s pressing fiscal needs and promoting economic stability. Its passage also reflects Parliament’s dedication to ensuring that critical government functions continue uninterrupted, particularly during the transitional phase as the Mahama administration prepares to assume office.
The Finance Minister, Dr. Mohammed Amin Adam, assured Parliament and the public that the delay in presenting the Mini-Budget would not adversely impact government operations. He emphasized that adequate measures were in place to guarantee the smooth delivery of public services during the transitional period. This assurance helped to ease concerns and foster consensus among lawmakers, ultimately facilitating the budget’s approval.
The 2025 Mini-Budget represents a critical tool for stabilizing Ghana’s economy during the first quarter of the year. It provides the necessary financial resources to support essential services while setting the stage for the incoming administration to implement its policy agenda. By prioritizing key sectors such as healthcare, education, and infrastructure, the budget aims to address immediate challenges while laying the foundation for long-term economic growth and development.
As Ghana transitions to a new administration, the focus will now shift to the effective implementation of the approved budget. The Mahama administration will be tasked with ensuring that allocated funds are utilized efficiently and that the outlined policy objectives are achieved. This will require strong coordination between government agencies, robust fiscal management, and a commitment to transparency and accountability.
The Mini-Budget also highlights the importance of revenue mobilization in sustaining Ghana’s fiscal stability. With domestic revenue projected to contribute the lion’s share of total revenue, the government will need to intensify efforts to broaden the tax base, improve tax compliance, and enhance revenue collection mechanisms. This will be essential in reducing Ghana’s reliance on external financing and ensuring the sustainability of its development agenda.
Beyond fiscal considerations, the Mini-Budget serves as a reflection of Ghana’s democratic maturity. The debates and deliberations that characterized its approval underscore the importance of dialogue and consensus-building in governance. While political differences were evident, Parliament ultimately prioritized the nation’s interest, demonstrating its commitment to upholding Ghana’s democratic values.
The approval of the Mini-Budget also signals the readiness of the incoming Mahama administration to hit the ground running. With the budget providing a financial blueprint for the first quarter, the administration has a solid foundation to build upon as it seeks to implement its broader policy agenda. This transition period presents an opportunity for the government to address longstanding challenges and chart a new course for national development.
As stakeholders look ahead, the effective implementation of the Mini-Budget will be critical in maintaining public confidence and fostering economic resilience. The government must ensure that resources are allocated efficiently and that spending is aligned with the nation’s development priorities. Transparency and accountability will be key in this regard, as citizens and development partners alike will be monitoring the government’s performance closely.
In conclusion, the passage of the 2025 Mini-Budget is a testament to Ghana’s commitment to fiscal responsibility and economic stability. It reflects Parliament’s dedication to ensuring the continuity of government operations and its resolve to address the nation’s pressing needs during a transitional period. As the Mahama administration takes the reins, the focus will now be on translating the approved budget into tangible outcomes that benefit all Ghanaians.
