2025 Budget: We must be cautious with the pomp and pageantry – IERPP

The Institute of Economic Research and Public Policy (IERPP), a policy think tank dedicated to social reform, and sound economic management, has said that while the intent of the 2025 budget is to be appreciated, Ghanaians must be cautious with its accompanying pomp and pageantry.

IERPP in its preliminary analysis of the 2025 budget statement said that the 24 hour economy is the main flagship policy of the NDC government.

It said the NDC promised to create a three shift system for workers in the public sector. Additionally, the proposal also seeks to provide energy subsidies to businesses and firms; albeit to reduce production costs and creating the much needed revenue to engage more hands.

“Strangely, a precursor of the budget statement failed to provide a clear guide on how much the 3-shift would cost the tax payer; and how the government would mitigate the liability thereof, regarding paying workers the same wage to undertake the same job. Neither estimated figures on the possible number of people who would benefit from the policy nor budget lines were provided.

“All we have been told by the minister of finance is that, a 24-hour policy would be presented to parliament. This leaves much to be desired for a government that spent eight (8) years in opposition. It clearly shows a lack of thought,” IERPP said.

On revenue mobilization, it noted that the minister specifically highlighted that total revenue and grants for 2025 is projected at Ghc223.8 billion or the equivalent of 17.2% of GDP.

“Now, the same line, highlighted that total revenue for 2024 was Ghc186.5 billion, or the equivalent of 17.4% of GDP. This clearly shows we are going to retrogress in revenue generation in real terms. This isn’t the promise the Honorable Finance Minister made to the people of Ghana during his vetting.

“Furthermore, on cash basis, the overall balance is a projected deficit of Ghc56.9 billion, equivalent to 4.1 percent of GDP in 2025. Comparable to 2024, the overall cash budget deficit was Ghc36.1 billion, equivalent to 3.4% of GDP as presented in the 2024 mid year budget. While the intent of the budget is to be appreciated, however, we must be cautious with its accompanied pomp and pageantry,” it said.

Following the budget presentation by Finance Minister Dr Cassiel Ato Forson on Tuesday March 11, the Minority Leader Alexander Afenyo-Markin described the budget as “Azaa” (deceptive)  budget.

He indicated that the youth of this country were expecting to hear more on the government’s much talked about 24-hour economy yet the Finance Minister did not capture the policy in the budget.

Speaking on the floor of Parliament after the budget presentation, he said “we have witnessed what we can best be described as Azaa budget. Their own much talked about the 24-hour economy the president came here and said it is not ready,  again the Finance Minister comes here and the 24-hour economy is not included in his budget statement. The youth of this country have been waiting for the 2025 budget, but the minister tells us that the policy will be brought later.”

However, the Majority Leader Mahama Ayariga for his part, described the budget as solid.

“The budget provides solid reforms, moving our growth from galamsey economy to real,” he also on the floor of the House.

During the budget presentation on Tuesday, March 11, Finance Minister Dr Cassiel Ato Forson said among others that, the government is establishing the Ghana Gold Board (GOLDBOD) to support foreign exchange inflows and gold reserve accumulation for the benefit of our dear country.

To achieve this, he said, the GOLDBOD shall regulate, oversee, monitor and undertake the purchasing, assaying, refining, exporting, selling and other related activities concerning the gold resources of Ghana.

He further said that the government is stabilising the Ghana Cedi and macroeconomy through an urgent economic recovery programme to shore up our foreign reserves.

“In addition, develop a deliberate policy to build economic buffers through external reserves to cushion the Ghana Cedi,” he said.

Dr Cassiel Ato Forson, also stated that government’s proposed 24-hour economy policy will be formally presented to Parliament for approval.

He announced this on Tuesday, 11th March, during the presentation of the 2025 Budget Statement and economic policy to Parliament.

The policy, a key initiative of the Mahama-led National Democratic Congress (NDC) government, aims to boost economic productivity by encouraging businesses to operate around the clock.

Dr Forson noted that the 24-hour economy has the potential to create jobs and foster sustainable economic growth.

“The Mahama-led NDC government is committed to the pursuit of the 24-hour economy policy,” he stated.

He explained that this initiative aligns with the administration’s broader agenda of enhancing economic opportunities and ensuring inclusivity in employment.

The 24-hour economy concept has been a major talking point in recent political discourse, with proponents arguing that it will maximise the use of infrastructure and resources while increasing productivity across key sectors.

The Finance Minister assured Parliament that measures are being put in place to ensure a smooth rollout of the policy, including incentives for businesses willing to operate beyond traditional working hours.

As part of the government’s economic transformation strategy, Dr Forson noted that the 24-hour economy policy would be a catalyst for industrial expansion and investment.

He urged Parliament to support the initiative once it is formally presented, stating that its success would depend on collaboration between the public and private sectors.

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