NPP administration did terrible damage to the economy – Kwakye Ofosu

Minister of Government Communications, Felix Kwakye Ofosu has accused the previous New Patriotic Party (NPP) administration of damaging the economy.

Under their watch, he said, Ghanaians were subjected to deep hardships due to the Domestic Debt Exchange Programme (DDEP).

“Look at the cost of living crisis that the mismanagement has done to the people,” he said on the Key Points on TV3 on Saturday, March 15.

He further recounted that the local current, the Cedi depreciated by 19 per cent in 2024. In 2023 he added, it depreciated by 27 per cent.

“This economy is not in good shape,” he said on the Key Points on TV3 on Saturday, March 15.

“The currency depreciated by 19 last, the previous, 27 per cent…so how can anybody look at this and be happy,” he added.

“The NPP did terrible damage to the economy,” he said.

Also commenting on the same show, a Development Economist, Dr George Domfeh told the Finance Minister Dr Cassiel Ato Forson that he should have kept the E-ley.

Rather than removing it entirely, he said, the Minister could have reduced the rate.

“E-levy should not have been removed. Economically they should have done something about it,  if the 1per cent is high they could have reduced it,” he said on the Key Points on TV3 on Saturday, March 15.

Similarly, an economics lecturer at the University of Ghana, Dr Adu Owusu  Sarkodie told the Finance Minister to keep the Covid Levy.

He says money generated from this particular levy can be used to finance health infrastructure.

“I am against the scrapping of the COVID-19 levy. Those monies could have been channelled into funding healthcare interventions,” he said.

The Finance Minister has said that the government will abolish the COVID-19 Levy by the end of the year.

The announcement was made during the presentation of the 2025 Budget Statement and Economic Policy on March 11.

The Minister had complained about the current VAT rate which is about 22%.

“This is because GETFund Levy of 2.5%, the National Health Insurance Levy (NHIL) of 2.5% and
COVID-19 Levy of 1% are all added to the base for the final determination of the VAT rate of 15%,” he explained.

Dr Adu Owusu  Sarkodie has indicated that the 2025 budget sought to fulfil most of the campaign promises.

READ ALSO: 2025 budget sought to fulfil most of the campaign promises – Dr Sarkodie

He mentioned the Women’s Development Bank, The Big Push, and 24-hour economy as some of the promises that the budget sought to fulfil.

“The focus is more on fiscal consolidation. I thought they should have kept the expenditure at 2024 levels but to cut it by 10 billion cedis was very huge but I understand them because if you keep it at very high you have to finance it,” he said on the Key Points on TV3 Saturday March 15.

The government has al­located GH¢51.3 million as seed funding for the estab­lishment of the Women’s Development Bank (WDB) to support women entrepre­neurs and traders.

This was announced by the Minister for Finance, Dr Cassiel Ato Forson, while pre­senting the 2025 Budget to Parliament.

The initiative aims to address the per­sistent challenges women face in accessing capital for the growth of their businesses.

“The Women’s Development Bank will remove barriers such as collateral and equity requirements that have made it difficult for women to secure funding from traditional banks,” Dr Forson stated.

The bank is expected to provide flexible financial solutions tailored to the needs of women in small and medium enterprises, enabling them to expand their businesses and improve their livelihoods.

In addition to the WDB initiative, the government has allocated GH¢292.4 million to begin the free distribution of sanitary pads to female students in primary and sec­ondary schools.

This is to address the difficulties many schoolgirls face during their menstrual cycles, ensuring uninterrupted education.

Dr Forson stressed that the government remained committed to social protection programmes, with increased budgetary allocations to the National Health Insurance Scheme (NHIS), the Livelihood Empower­ment Against Poverty (LEAP) Programme, the School Feeding Programme, and the Capitation Grant.

Under the LEAP programme, benefits had been adjusted to reflect inflation, and the number of beneficiary households will in­crease from 350,000 to 400,000 in July 2025.

The government has also raised the allocation for LEAP benefits by 30.8 per cent, from GH¢728.8 million to GH¢953.5 million.

“These interventions reaffirm the govern­ment’s commitment to supporting vulner­able groups and ensuring social equity,” Dr Forson noted.

During his speech before presenting the budget, Dr Forson, emphasised the need for national unity and collective effort in addressing Ghana’s economic challenges.

He noted that the just-ended National Economic Dialogue, the first in over a de­cade, was a crucial opportunity to reflect on the country’s economic realities and chart a course for recovery.

“This dialogue is an opportunity to reflect on our economic reality, address pressing challenges, and chart a course towards a more prosperous future for all our citizens,” he stated.

The minister also acknowledged the se­vere impact of recent economic difficulties, including currency depreciation, hyperin­flation, high taxes, rising fuel and electricity prices, and soaring interest rates.

He stressed that the crisis was not over and that significant sacrifices were needed to stabilise the economy.

He highlighted President John Dramani Mahama’s commitment to fiscal discipline, including reducing the number of ministers from 123 to 60 and implementing budget cuts for the Office of the President. Ad­ditionally, first-class travel for government officials had been prohibited as part of cost-cutting measures.

 

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