We await specific details on the 24-Hour economy policy – Deloitte tells govt

Professional services firm Deloitte has said that they are awaiting for specific details on the 24-Hour economy policy idea by the Mahama administration.

The Minister for Finance, Dr Cassiel Ato Forson, had 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.

But in its analysis of the 2024 Budget and Economic Statement, Deloitte said “We await specific details on the 24-Hour economy, using government procurement to spur local growth and the ‘Big Push’ strategic infrastructural development programme, which aims to allocate US$10 billion to fund infrastructural development. Last is the all-important matter of Ghana’s current debt status and its impact on our overall development.

“Ghana already has the necessary legal framework for which we look forward to seeing tightening of fiscal responsibility rules to ensure debt sustainability. The current debt levels within the energy sector, especially in electricity generation and distribution, need to be resolved with the proposed comprehensive and concerted push.

“At Deloitte, we are guided by our purpose of making an impact that matters, and in these times, we deliver on this purpose ensuring that our clients, the public and society are abreast of the economic happenings and their effects.

“This publication therefore highlights the key aspects of the 2025 Budget Statement and provides an analysis of the outlook of Ghana’s current economic standing, where we are headed in resetting the economy, and the key policies scheduled for implementation in the 2025 financial year.”

Deloitte further indicated that they support the government’s resolve to cut spending.

READ ALSO: 24-Hour Economy policy will be presented to Parliament for approval – Ato Forson

Deloitte noted that the resolve to cut expenditure could facilitate the restoration of investor confidence and overall macroeconomic stability.

“We support the government’s resolve to be measured in its spending as this can facilitate the restoration of investor confidence and overall macroeconomic stability”, it said in its review of the 2024 Budget.

Professional services firm further indicated that the decline in real GDP growth can be attributed to the expected government’s fiscal tightening stance and aggressive expenditure-cutting measures.

“These measures are expected to limit the government’s ability to roll out some of its key policies and programmes, which, in the short term, is likely to slow down economic growth, hence the projected decline in real GDP growth in 2025”, it said in its analysis of the 2024 Budget and Economic Statement.

READ ALSO: Cutting expenditure by GHS10 billion was very huge – Economist tells Finance Minister

Going forward, Deloitte said it is important for the government to reverse the trend of high levels of budget deficits (which averaged about 7.5% over the period 2021-2024) and primary balance deficits as these will increase budget arrears and debt burden amidst the recently constrained fiscal environment resulting from unsustainable debt levels.

It also pointed out that the projected deficit of 3.1% of GDP for 2025 sends a message of prudence on the part of the Government as it navigates through the International Monetary Fund (IMF) Economic Credit Facility programme.

“A key highlight of the 2025 Budget Statement is the abolishment of a number of taxes and promised reform of the Value Added Tax (VAT) regime. The expected VAT reform would be much welcomed by the business community, and we look forward for this to be initiated and completed in this calendar year. The business community is also looking forward to “realignment” of import duties, especially on production inputs, to enable it grow and provide the necessary jobs in the economy.

 

 

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