Concerns Regarding Credibility Crisis in Ghana’s 2025 Budget: Analysis by Dr. Amin Adam

Former Finance Minister Dr. Mohammed Amin Adam criticizes Ghana’s 2025 Budget for its lack of credibility, transparency, and adherence to fiscal methodologies. He highlights discrepancies between projected GDP growth and past performance and warns of potential credibility crises stemming from unaudited fiscal data. Adam calls for urgent scrutiny by the International Monetary Fund to uphold fiscal integrity in Ghana.

Dr. Mohammed Amin Adam, former Minister of Finance under President Akufo-Addo, has flagged significant concerns regarding the credibility of the fiscal figures outlined in the 2025 Budget presented by Finance Minister Dr. Cassiel Ato Baah Forson on March 11, 2025. During a press conference held by the New Patriotic Party (NPP) Minority Caucus, he stated that the fiscal projections lack transparency and warrant careful examination from the Ghanaian populace.

Dr. Ato Forson forecasted a Gross Domestic Product (GDP) growth rate of 4.4% for 2025; however, the NPP Minority Caucus contended this estimate is declined from the 5.7% growth rate achieved in 2024 under the previous administration. Dr. Amin Adam remarked, “Their projection of the fiscal balance for 2025 makes this budget not credible and requires serious scrutiny by the people of Ghana.”

He criticized the current government for not recognizing the improved debt management measures enacted by the NPP administration, which successfully reduced Ghana’s debt-to-GDP ratio to 61.8% by the end of 2024, thereby fostering a more advantageous economic climate. Dr. Amin stated, “The government has announced its return to the bond market, yet it has failed to acknowledge the enhanced debt environment created by the previous NPP government.”

Additionally, Dr. Adam accused the government of distorting fiscal data to substantiate claims of inheriting a mismanaged economy. He alleged that GHS 49.2 billion in expenditure claims were added without due verification, asserting that the 2025 Budget is merely a tool for perpetuating misleading narratives about the previous administration.

He insisted that the reported fiscal deficit of 7.6% of GDP and a primary deficit of 3.6% of GDP do not match the asserted revenue performance and expenditure data, which he believes should alarm Ghanaians regarding the integrity of the nation’s fiscal data. Dr. Amin highlighted the government’s failure to adhere to the agreed methodology for calculating fiscal balances.

He expressed concern over the use of unaudited fiscal data to draw conclusions about the economy, stating, “This is an elementary mistake that creates credibility problems for the budget.” He stressed that fiscal balances must be derived from cumulative data and verified expenditure claims when use of the IMF methodology is involved.

In conclusion, Dr. Mohammed Amin Adam’s critique of the 2025 Budget highlights significant concerns regarding its credibility and transparency. He emphasizes the importance of accurate fiscal data and adherence to established methodologies to maintain the trust of the Ghanaian public. The urgent call for scrutiny by the International Monetary Fund reinforces the necessity for transparency and accountability in fiscal management, especially given the complexities of the current economic landscape.

Original Source: www.gbcghanaonline.com