Highlights of Ghana’s 2025 Budget Presentation by President John Mahama

Ghana’s 2025 budget, presented by President John Mahama, abolishes various taxes including the 10% betting tax and 1% COVID-19 levy, emphasizing economic recovery. A total allocation of GHS 290 billion ($19 billion) focuses on infrastructure, health, and education reforms, with expectations of a 4.4% growth rate. The administration aims to reduce government size and expenditures while reintroducing road tolls for revenue generation.

President John Mahama’s administration has officially presented the 2025 government budget, highlighting the abolishment of several taxes. Finance Minister Dr. Casiel Ato Forson emphasized that this budget aims to rejuvenate the economy following the previous administration’s fiscal policies. The overall budget allocation for the fiscal year amounts to GHS 290 billion ($19 billion), focusing on investments that foster growth and prosperity for citizens.

The government has abolished the 10% betting tax introduced by the previous administration, as well as a 1% COVID-19 levy previously levied on electronic transactions. Many citizens opposed the electronic transaction levy since its introduction in 2022. Additionally, the 1% COVID-19 levy, which remained in place after the pandemic’s decline in 2021, has now been rescinded. This endeavor is part of the government’s promise to alleviate financial pressure on households.

Significant budget allocations included GHS 13.85 billion ($894 million) for infrastructure development and GHS 9.9 billion ($641 million) to the national health insurance scheme to ensure free healthcare access. Moreover, GHS 3.5 billion ($226 million) is particularly allocated for the review and support of the controversial free senior high school policy. The budget also aims to support women’s development through a seed fund of GHS 51.3 million ($3.3 million).

Other notable allocations in the budget involve GHS 499.8 million ($32.2 million) for first-year public tertiary students and GHS 292.4 million ($19 million) for distributing free sanitary pads to female students. The budget also underscores contributions to education, disaster relief, and apprenticeships, aligning with the administration’s economic transformation agenda.

The reintroduction of road tolls has been announced, using technology for better revenue collection for road maintenance. This follows the previous abolition of tolls during the prior administration. The government also declared intentions to minimize expenditures by appointing fewer ministers, leading to significant savings and concluding certain previous programs deemed ineffective.

The finance minister has projected a growth rate of 4.4% for the upcoming fiscal year, supported by macroeconomic strategies and expected revenue collection. The administration aims to present a comprehensive economic recovery strategy later in the year, which includes initiatives to facilitate increased employment through a 24-hour economic policy.

Overall, these measures signify a strategic shift in Ghana’s economic policy under President Mahama’s leadership, aiming to stabilize and grow the economy while addressing citizen concerns.

In conclusion, President John Mahama’s proposed 2025 budget showcases significant tax reforms and strategic allocations aimed at fostering economic growth. By abolishing multiple taxes and allocating substantial funds towards infrastructure, health, and education, the government is positioning itself to respond effectively to the needs of its citizens. The expected growth rate of 4.4% reflects the administration’s commitment to applying sound fiscal policies to revitalize the economy and enhance living standards.

Original Source: www.bbc.com