Finance Minister Dr. Cassiel Ato Forson is set to present the 2025 Budget Statement and Economic Policy to Parliament today, marking a significant moment for the Mahama administration as it outlines its economic vision for Ghana. This budget serves as the first comprehensive financial plan under President John Dramani Mahama since assuming office, and expectations are high as the government seeks to stabilize the economy, promote growth, and implement policies that will ease the financial burden on citizens.
Among the most anticipated aspects of the budget is the proposed removal of several controversial taxes introduced by the previous administration. These include the Electronic Transfer Levy (E-Levy), the COVID-19 Health Levy, and the Betting Tax, all of which have faced strong opposition from the public. The Mahama administration has repeatedly promised to create a fairer tax system that does not unduly burden ordinary Ghanaians and businesses. The removal of these levies is expected to bring significant relief, particularly for mobile money users, small business owners, and individuals engaged in the growing online betting industry.
The E-Levy, which was introduced as a means to generate revenue from electronic transactions, has been a contentious issue since its implementation. While it was intended to widen the tax base, many Ghanaians argued that it disproportionately affected low-income earners who rely heavily on mobile money for daily transactions. Its removal will likely increase financial transactions and encourage more people to utilize digital payment platforms without fear of excessive charges. This could also lead to an increase in economic activity, as businesses and individuals will be more inclined to make digital payments, thus boosting financial inclusion across the country.
Similarly, the COVID-19 Health Levy was initially implemented to support pandemic-related expenditures, but as Ghana moves past the crisis, critics have questioned the necessity of maintaining the tax. Its removal is expected to reduce the cost of goods and services, easing financial pressure on consumers. Over the past few years, the economic impact of the pandemic has led to increased inflation, and many businesses have struggled to recover. Eliminating this tax will provide some respite, particularly to small and medium-sized enterprises (SMEs) that continue to battle rising operational costs.
The Betting Tax, which sought to regulate and tax online betting activities, has also been a subject of debate. The Mahama administration believes that eliminating this tax will encourage growth within the gaming industry while ensuring that proper regulations are in place. The online gaming sector has seen rapid growth in Ghana, with many young people engaging in sports betting and digital gaming platforms. While taxation is necessary for government revenue, critics have argued that overly taxing this sector could discourage investment and drive operators into the informal economy. By removing the tax, the government aims to create a more structured and regulated betting environment that generates employment while ensuring fair taxation policies.
Beyond tax relief, the budget is expected to prioritize job creation and economic expansion. The administration is likely to introduce initiatives aimed at addressing youth unemployment through skills development, entrepreneurship support, and incentives for businesses to hire more workers. Economic experts anticipate targeted investments in key sectors such as agriculture, manufacturing, and technology to drive sustainable job opportunities. Agriculture, for instance, remains the backbone of Ghana’s economy, employing a significant portion of the population. Policies aimed at modernizing agriculture, providing financial support to farmers, and boosting local food production are likely to be included in the budget.
Infrastructure development will also take center stage, with the government expected to allocate significant resources toward improving roads, transportation networks, energy supply, and digital connectivity. These investments are crucial for enhancing business operations, attracting foreign direct investment, and ensuring long-term economic competitiveness. For instance, Ghana’s poor road networks have often been cited as a major hindrance to trade and commerce. Upgrading these roads will facilitate smoother transportation of goods and services, reduce travel time, and ultimately lower the cost of doing business.
Energy supply is another area that is expected to receive attention. Frequent power outages, commonly referred to as “dumsor,” have been a major challenge for businesses and households alike. The budget is likely to outline strategies for stabilizing the energy sector, including investments in renewable energy, increased power generation capacity, and measures to ensure affordable electricity for consumers. A stable power supply is essential for industrial growth and will encourage more investors to set up manufacturing plants in Ghana.
In addition to infrastructure, social intervention programs are likely to receive a boost. The Mahama administration has consistently emphasized its commitment to improving access to quality healthcare and education. The budget may introduce new policies aimed at strengthening social safety nets, expanding access to free primary healthcare, and enhancing educational opportunities for underprivileged communities. Investing in human capital is a key priority for the government, as an educated and healthy workforce is critical for national development.
The economic backdrop against which this budget is being presented adds to its importance. Ghana has faced persistent challenges, including high inflation, currency depreciation, and mounting debt. The new administration is expected to outline strategies for economic recovery, fiscal discipline, and debt sustainability while ensuring that growth is inclusive and benefits all segments of society. Measures to reduce inflation and stabilize the Ghanaian cedi are likely to be a major focus. The depreciation of the cedi has increased the cost of imports, affecting businesses and consumers alike. A well-structured economic plan will be essential in restoring investor confidence and ensuring macroeconomic stability.
The budget presentation is also expected to address Ghana’s engagement with international financial institutions, including the International Monetary Fund (IMF). The country has been under an IMF program aimed at stabilizing the economy and implementing structural reforms. The Mahama administration’s approach to IMF negotiations and debt restructuring will be closely monitored by both local and international stakeholders. Clear policies on debt management and sustainable borrowing will be crucial in maintaining economic credibility.
As the budget presentation unfolds, Ghanaians will be looking for clear and actionable plans that align with the administration’s promises of economic relief and national development. The coming days will determine how well the budget is received by the public, businesses, and economic analysts. What remains clear is that this financial policy will set the tone for Ghana’s economic direction in the years ahead.
With high expectations, the government must ensure that the budget is not just a statement of intent but a practical roadmap that will lead to economic transformation. Ghanaians will be keen to see how these policy proposals translate into tangible improvements in their daily lives. The success of this budget will largely depend on the government’s ability to implement its plans effectively and navigate the challenges ahead.
