PIED Advocates for Effective Implementation of Progressive 2025 Budget Policies

The Policy Initiative for Economic Development (PIED) supports the progressive policies of the 2025 budget but stresses the importance of effective implementation. Key changes include the elimination of various taxes and substantial social program funding. PIED urges local procurement for initiatives to empower businesses and cautions against the uncritical continuation of previous programs. Finance Minister Dr. Cassiel Ato Baah Forson emphasizes a commitment to a resilient economy and community support for successful execution.

The Policy Initiative for Economic Development (PIED) commended the government’s progressive policies in the 2025 budget while emphasizing the importance of effective implementation. Dr. Daniel Ameteye Amin-Prempeh, Chief Economist with PIED, noted the necessity of addressing corruption and ensuring that implementation does not falter. He highlighted that successful execution of revenue and expenditure measures is vital for economic stability going forward.

Significant economic changes proposed include eliminating the Electronic Transfer Levy (e-levy), COVID-19 Levy, and the 10 percent tax on betting winnings. Additionally, the budget suggests eliminating the Emission Levy, VAT on vehicle insurance, and the 1.5 percent withholding tax on unprocessed gold for small-scale miners. These adjustments are expected to create a more favorable economic environment.

On a social level, the government allocated substantial funds, including GH₵3.5 billion for the Free Senior High School program and GH₵499.8 million for the No-Academic-Fee policy for public tertiary institutions. Moreover, it earmarked GH₵242.5 million for victims of the Akosombo dam spillage and GH₵200 million for tidal wave disaster assistance in Ketu South. An allocation of GH₵292.4 million also aims to distribute free sanitary pads to female students, with the hope that procurement should support local businesses.

Dr. Amin-Prempeh urged the government to ensure that initiatives such as the sanitary pads reach the intended beneficiaries rather than being misallocated. He also cautioned against blindly continuing previous government initiatives, notably the Planting for Food and Jobs (PFJ) program. Finance Minister Dr. Cassiel Ato Baah Forson reaffirmed the government’s commitment to a 24-hour economy to foster economic growth and job creation, asserting that the budget serves as a foundation for a more resilient society, encouraging support from all sectors of society for successful implementation.

In conclusion, PIED’s evaluation of the 2025 budget highlights the progressive nature of the proposed policies and emphasizes the critical need for their effective execution. With substantial allocations for both economic reforms and social initiatives, the government seeks to address key challenges facing the populace. However, vigilance against corruption and ensuring that the benefits reach the intended beneficiaries are essential for the ultimate success of these programs.

Original Source: gna.org.gh