The Ghanaian government, led by President John Mahama, has announced the 2025 budget which totals GHS 290 billion. Key highlights include the abolition of several taxes, significant funding for infrastructure and health, and the reintroduction of road tolls. The government aims to reduce expenditures and project a growth rate of 4.4%, reflecting a commitment to economic recovery and fulfillment of campaign promises.
Ghana’s President John Mahama, alongside Finance Minister Dr. Casiel Ato Forson, has presented the government’s budget for the 2025 fiscal year, signaling a commitment to reset the economy. The budget, totaling GHS 290 billion ($19 billion), aims to foster growth and prosperity while abolishing certain taxes, including a 10% betting tax, a 1% COVID-19 levy, and an electronic transaction levy that had sparked public discontent since its introduction in 2022.
Key allocations in the budget include GHS 13.85 billion ($894 million) earmarked for a “big push” infrastructure agenda, along with GHS 9.9 billion ($641 million) for health to support the National Health Insurance Scheme. The finance minister also noted a GHS 3.5 billion ($226 million) budget for the free senior high school policy, while GHS 51.3 million ($3.3 million) has been allocated to set up a women’s development bank to facilitate loans for women entrepreneurs.
Additional noteworthy allocations encompass provisions for education such as GHS 499.8 million ($32.2 million) for free tuition for first-year public tertiary students, GHS 292.4 million ($19 million) for distributing free sanitary pads to female students, and GHS 1.788 billion ($115 million) for the school feeding program. The budget also seeks to enhance the nation’s infrastructure and support impacted communities through disaster relief allocations.
Furthermore, the government plans to reintroduce road tolls using advanced technology for collection, after abolishing them in 2021. This measure, advocated by the finance minister, is set to generate revenue while ensuring transparency. Additionally, in managing government expenditures, the administration has promised to cut down on ministerial positions and abolish certain policies introduced by previous governments, projecting an economic growth rate of 4.4% for the year ahead.
The budget reflects a widespread anticipation among citizens for tax abolitions as per campaign promises and seeks to ensure economic revival amidst ongoing challenges. The finance minister’s comments reinforced a vision to alleviate burdens on households while advancing national development objectives.
The new government’s approach marks a significant pivot aimed at addressing economic discontent and fostering sustainable growth through infrastructural development and social supports.
The 2025 budget presented by President John Mahama’s administration outlines significant fiscal reforms aimed at stimulating Ghana’s economy. Key aspects include the removal of multiple taxes, substantial allocations for health and education, and a focus on infrastructure development. Additionally, the reintroduction of road tolls and a commitment to efficient governance through a smaller cabinet illustrate proactive steps to enhance fiscal responsibility. Overall, the budget aims to align with campaign promises and set a foundation for economic growth in the upcoming year.
Original Source: www.bbc.com
