Critique of 2025 budget: Strengths, shortcomings, and policy recommendations

By Sangu DELLE (Dr)

The 2025 Budget, themed “Resetting the economy for the Ghana we want,” lays out ambitious measures to stabilize and transform Ghana’s economy after years of fiscal strain.

It targets a real GDP growth of at least 4.0% in 2025 (4.8% for non-oil GDP) and aims to bring inflation down to

11.9% by end-year . Crucially, the Budget seeks to restore fiscal discipline with a primary surplus of 1.5% of GDP  – a significant turnaround from recent deficits – and to rebuild foreign reserves to cover at least 3 months of imports .

Key policy initiatives include aggressive fiscal consolidation (cutting wasteful expenditures, overhauling tax policy) and bold social programs in education and health to boost human capital.

The Budget also outlines structural reforms, such as procurement process improvements and enforcement of Public Financial Management (PFM) rules, signaling intent to strengthen governance in public finance .

A comparative look at Ghana’s fiscal trends over the last eight years (2017–2024) provides context for the 2025 proposals. Ghana’s revenue mobilization has consistently lagged behind its peers, with total revenues and grants hovering in the mid-teens as a percentage of GDP. In 2016, revenues were about 15% of GDP and remained in that range; even by 2024, provisional outturn was only 15.9% of GDP .

The 2025 Budget projects a modest increase to 16.1% of GDP , indicating that while revenues are expected to improve slightly through better tax administration and new measures, they will still be relatively low. On the expenditure side, Ghana’s spending (and deficits) swelled in the late 2010s and early 2020s.

After adhering to a 5% deficit ceiling pre-2020, the overall fiscal balance deteriorated sharply with the shocks of COVID-19 and fiscal slippages – ballooning to an estimated -15% of GDP in 2020 and remaining high thereafter.

By 2024, the overall deficit (on commitment basis) was about 7.9% of GDP  (and 5.2% on cash basis ), contributing to rapid debt accumulation. Public debt rose from ~65.7% of GDP in 2019 to about 80.4% in 2020 , eventually breaching sustainable levels and prompting a debt restructuring in 2023–2024.

Thanks to the ongoing debt restructuring efforts, Ghana’s debt stock is projected to decline to about 61.8% of GDP by end-2024 , creating a window for fiscal reset.

The 2025 Budget builds on this by drastically tightening the deficit: it plans to slash the overall fiscal deficit to 3.1% of GDP in 2025  – a level of consolidation unprecedented in recent years – and to gradually move into surplus by 2028. This reflects a decisive break from the past eight years of loose fiscal balances and signals a commitment to debt sustainability.

Strengths of the Budget

The 2025 Budget is commendably people-centered, prioritizing social programs that align with the National Democratic Congress (NDC)’s social democratic vision. It makes substantial allocations to education and healthcare that will protect vulnerable groups and invest in human capital.

Notably, the government is introducing a “No-Academic-Fee” policy (No-Fees-Stress initiative) which will eliminate academic fees for all first-year students in public tertiary institutions . An amount of GH¢499.8 million has been earmarked to fund this first-year free tertiary education policy , expanding access to higher education.

Similarly, the Budget provides GH¢292 million for the distribution of free sanitary pads to schoolgirls  – a social intervention aimed at improving girls’ education by addressing menstrual hygiene barriers.

The Free Secondary Education programme (Free SHS) begun in previous years is sustained with a hefty allocation of GH¢3.5 billion , alongside GH¢564.6 million for free textbooks to support the new curriculum  and GH¢1.79 billion to expand the School Feeding Programme (a 33% increase) to enhance nutrition for pupils .

In healthcare, the Budget fully uncaps the National Health Insurance Levy so that the National Health Insurance Scheme (NHIS) receives its full due funding . As a result, NHIS is allocated about GH¢9.93 billion , enabling it not only to clear claims arrears but also to implement the new “MahamaCare” Free Primary Healthcare initiative .

This free primary healthcare program, together with the Ghana Medical Care Trust (for specialized care subsidies) and other health interventions, will broaden access to healthcare at the primary level, directly benefiting the poor and uninsured. These social investments – free education at various levels, healthcare access, and targeted support for girls and persons with disabilities – are strengths of the budget because they address equity and build human capital for long-term growth.

They reflect the NDC’s emphasis on inclusive development and will help cushion households amid economic recovery. Importantly, they also respond to public needs: for instance, the abolition of first-year tertiary fees and the restoration of nursing and teacher trainee allowances (GH¢480 million and GH¢203 million allocated respectively)  should alleviate burdens on students and training colleges, potentially improving the supply of critical professionals.

The budget demonstrates a strong commitment to infrastructure development and job creation through strategic programs. Central to this is the “Big Push” infrastructure agenda, for which GH¢13.85 billion is allocated . This Big Push programme is poised to invest in large-scale projects (roads, schools, hospitals, water systems, etc.) to stimulate economic activity and address the country’s infrastructure gaps.

Such investment not only creates construction jobs in the short term but also lays the foundation for private sector growth and productivity in the long term – a vision very much in line with the NDC’s development philosophy of state-enabled growth. In the economic sectors, the Budget introduces or funds several targeted job creation and industrial support initiatives: the Agriculture for Economic Transformation Agenda (AETA) receives GH¢1.5 billion to modernize agriculture and improve productivity, which will generate rural jobs and enhance food security.

There is also a renewed focus on youth employment and skills: the National Apprenticeship Programme (GH¢300 million) and the “Adwumawura” Programme (GH¢100 million) are funded to provide skills training and promote entrepreneurship . Additionally, the Budget sets aside seed capital of GH¢51 million for establishing the Women’s Development Bank to support women entrepreneurs , and GH¢100 million for a National Coders Programme to boost digital skills .

These initiatives indicate a well-rounded approach to job creation – spanning agriculture, vocational training, gender-focused finance, and ICT – which aligns with the NDC’s agenda of inclusive growth and reducing unemployment. The Budget even signals the pursuit of a “24-Hour Economy” policy to spur growth, with plans to shift factories to three shifts a day to create jobs and increase output (an idea referenced by the Finance Minister) – showcasing innovative thinking to tackle unemployment.

Overall, the allocation of funds to infrastructure and diverse job programs is a major strength: it balances immediate economic stimulus with long-term capacity building, and it coherently reflects the NDC’s manifesto promises of jobs, industrialization, and support for the vulnerable.

Another notable strength of the 2025 Budget is its clear focus on restoring macroeconomic stability. After years of fiscal stress, the budget takes tough consolidation measures that should help stabilize debt and inflation – outcomes critical for sustained growth. The targeted reduction of the overall fiscal deficit from 7.9% of GDP in 2024 to 3.1% in 2025  is an aggressive move toward fiscal health.

This will be achieved by both raising revenues modestly and, more significantly, cutting expenditures. On the expenditure front, the government plans to reduce primary expenditures from nearly 19.8% of GDP in 2024 to 14.6% in 2025 , below even the 2023 level. Such spending restraint, albeit challenging, will help contain debt accumulation.

Notably, the budget explicitly seeks to eliminate waste and duplication: it discontinues certain programs deemed inefficient or overlapping, including the GhanaCARES economic recovery program, the YouStart youth entrepreneurship scheme, and the One-District-One-Factory initiative  . While those programs had their merits, the government’s decision to streamline them signals a shift of resources to its own priority projects and a desire to avoid scattering funds too thinly.

Similarly, the closure or repurposing of bureaucratic structures is a strength: for example, the functions of the three Development Authorities (for Northern, Middle Belt, Coastal zones) will be reassigned to District Assemblies , eliminating redundancies and recentralizing development efforts at the local government level for efficiency.

The Budget also addresses the long-standing issue of arrears, which have plagued Ghana’s public finances over the past eight years  . It announces a comprehensive audit and validation of all outstanding payment claims as of end-2024 , and sets up a PFM Compliance Desk to monitor commitments and arrears in real time .

These steps are laudable as they will improve transparency and prevent the accumulation of hidden debts. The intent to enforce sanctions under the PFM Act for officials who incur unauthorized arrears  is also a positive sign of accountability. Furthermore, the budget includes debt management initiatives: it adheres to the path of debt restructuring (notably completing Eurobond restructuring, which helped bring the debt-to-GDP ratio down ) and plans to legislate a new Fiscal Responsibility Act with a debt limit and an independent fiscal council.

Such institutional reforms, alongside the commitment to maintain primary surpluses beyond 2025 , will strengthen fiscal discipline and credibility. The NDC’s perspective strongly favors restoring macro stability as a prerequisite for social investment – in this regard, the 2025 Budget’s blend of consolidation with social spending is a commendable balancing act.

Broadly, many policies in the budget mirror the NDC’s manifesto and philosophy, which is a strength in terms of policy coherence. The abolition of “nuisance taxes” – including the 1% E-Levy

(electronic transactions tax), the 10% “betting tax” on lottery wins, the road tolls suspension (to be replaced with a new toll system), and others – fulfills campaign promises and is intended to ease burdens on ordinary Ghanaians and small businesses  . This tax relief is coupled with measures to boost compliance, reflecting the NDC’s view that a broader base and more efficient tax

administration are preferable to over-taxation of a narrow base. Additionally, the Budget’s emphasis on industrialization and value addition – e.g. raising the Growth and Sustainability Levy on mining companies from 1% to 3% of gross production to capture windfall profits for national development  – resonates with the party’s goal of ensuring Ghana benefits more from its natural resources. The creation of new institutions like the Ghana Growth Fund and programs such as the Rapid

Industrialization for Jobs Programme (mentioned as part of the medium-term outlook  ) further align with NDC’s economic transformation agenda. Ultimately, the budget’s strengths lie in its pro-people initiatives, its infrastructure and job focus, and its credible steps toward economic stability. It addresses immediate social needs while laying groundwork for medium-term growth, which from an NDC perspective is the right approach to reset Ghana’s economy.

Shortcomings and Areas for Improvement

While the 2025 Budget is bold and largely positive, there are several areas where its strategies or assumptions raise concerns. A balanced critique must acknowledge these shortcomings to ensure they are addressed as implementation proceeds.

A key area of concern is whether the revenue projections and measures are realistic. The budget seeks to increase domestic revenue slightly (from 15.7% of GDP in 2024 to 15.9% in 2025)  despite simultaneously removing a number of taxes. The elimination of the E-Levy, betting tax, and others will certainly be popular, but it also means forfeiting some streams of income (even if small individually).

The Finance Minister has justified these as “nuisance taxes” that were yielding below potential and hindering business  , but the risk is that unless compliance improvements kick in quickly, the tax cuts could widen the fiscal gap. The budget assumes that better tax administration – digitizing the tax identification and filing processes, extending the Voluntary Disclosure Program for tax defaulters, and enforcing existing taxes – will compensate for the abolished taxes  . However, such reforms take time to bear fruit.

Ghana’s tax-to-GDP ratio has stubbornly remained around 12– 13% for non-oil taxes , and raising it by even 0.5-1 percentage point will require vigorous effort. There is a concern that the projected revenue increase (a 0.2 percentage point rise in revenue/GDP) might be optimistic given historical performance and potential economic headwinds.

If administration gains (like the promised overhaul of the VAT regime to remove distortions  ) face delays or resistance, revenue could underperform, putting pressure on deficit targets. In addition, some revenue measures might prove difficult to implement fully. For example, reintroducing road tolls via a technology-driven system  is sensible for infrastructure funding, but public acceptance and system rollout could be challenging within the year.

Likewise, increasing the mining levy (Growth & Sustainability Levy) to 3% of gross output  could face pushback from industry and potentially affect investment if not managed carefully. Simply put, the revenue strategy, while sound in intent (broadening base and capturing rents), carries execution risks and may have an optimism bias. A shortfall in revenues would jeopardize the fiscal consolidation drive, so this is a critical area to watch.

On the spending side, the budget’s dramatic expenditure cuts raise questions about feasibility and potential impacts. Targeting a reduction of primary expenditure by over 5 percentage points of GDP in one year  is extremely ambitious. Much of Ghana’s expenditure is on wages, interest, and statutory funds which are hard to compress quickly.

The budget does mention reducing the size of government (for instance, merging or eliminating some ministries and cutting down ministerial appointments, as was signaled by the President) – but concrete details on rationalizing the public sector wage bill are scarce in the document. Compensation of employees is projected to slightly decrease as a share of GDP (from 5.7% in 2024 to 5.5% in 2025) , which may imply tight restraint on public sector hiring and wages.

If inflation remains above 10% (target 11.9%), containing wage growth could be contentious and affect morale. Moreover, the large social interventions the budget touts – free primary healthcare, expanded education programs, disaster relief – will require efficient execution to ensure value for money. There is a risk that in trying to do so much at once, implementation quality could suffer.

For instance, distributing free sanitary pads nationwide or rolling out free primary healthcare will need robust procurement and delivery systems. Any leakage or delay could erode the expected social benefits and public trust. Another area for improvement is the sustainability of these social programs in the context of limited revenue. The budget for 2025 can accommodate them by re-allocating funds (e.g., uncapping the NHIL for health, or using oil revenues for education infrastructure), but over the medium term, if revenues do not grow substantially, maintaining and expanding these interventions could strain the budget.

It will be important to ensure that flagship programs like Free SHS, School Feeding, and “MahamaCare” are efficient and perhaps targeted to those most in need, to contain costs while achieving impact. For example, the free tertiary education for first-year students, while laudable, might need complementary measures to prevent overcrowding or decline in quality at public universities – otherwise the policy could falter. In health, free primary care could increase usage; if supply (doctors, nurses, clinics) does not keep up, service quality might drop. These are not arguments against the programs, but areas where careful planning and perhaps phased implementation would improve outcomes.

Despite the planned fiscal tightening, Ghana’s debt situation remains precarious and could pose a challenge to the budget’s success. The public debt (even after restructuring) at ~62% of GDP is still above the traditional 55% sustainability threshold, and debt service will continue to consume a significant portion of revenues.

In 2025, interest payments are projected to jump back to 4.6% of GDP (from a lower 4.0% in 2024 when some interest was suspended)  – this equates to roughly 29% of total revenue. There is a risk that debt servicing could crowd out other expenditures if, for instance, interest rates rise or the cedi depreciates more than expected.

The budget assumes a relatively stable exchange rate and successful completion of debt restructuring (especially external commercial debt). Any slippage in the macroeconomic environment – e.g. inflation not falling as fast, or foreign investors demanding a premium to hold Ghana’s new bonds – could worsen debt indicators. Additionally, the plan to rely primarily on Treasury bills for financing in the near term  means higher rollover and interest rate risk. Short-term domestic debt can become expensive if investors perceive risk or if global rates stay high.

The fiscal consolidation path itself, while necessary, could dampen growth in the short run; if growth falls below the 4% target, revenue could underperform and the debt-to-GDP ratio could even rise. In summary, the margin for error is thin – the budget’s projections leave little room for external shocks (like oil price drops or global recession) or domestic hiccups.

This calls for cautious optimism: the program is sound, but risks like debt sustainability and potential financing gaps must be managed carefully. The debt strategy could be more clearly articulated in the budget – for example, what happens if certain expected financing (like planned external supports or asset recoveries) does not materialize? A contingency plan would strengthen confidence.

Although the budget covers many bases, a few critical sectors warrant more attention or resources than currently allocated. One such sector is Agriculture. The GH¢1.5 billion for AETA (agric transformation)  is a good start, but considering agriculture employs a large share of Ghanaians and is vital for food security, the allocation might be insufficient to truly modernize the sector nationwide.

In recent years, farmers have struggled with high input costs and post-harvest losses. The budget does not clearly outline funding for broad-based interventions like fertilizer subsidies or irrigation expansion (beyond continuing existing programs). If global commodity prices fluctuate or droughts occur, the budget’s support to agriculture might fall short.

Another gap is education infrastructure: free education initiatives increase enrollment, but many schools (basic and secondary) face infrastructure deficits – overcrowded classrooms, inadequate facilities. The budget’s Big Push includes school projects, but a more detailed plan to expand and rehabilitate schools, hire trained teachers, and improve learning outcomes would bolster the impact of free education.

Similarly, in healthcare, while primary care is getting a boost, secondary and tertiary healthcare (hospitals, specialist services) need investment. The suspension of foreign aid (like the USAID support mentioned as having created a funding gap in health ) means the government must fill those gaps too.

It is not clear if the budget provides for hiring more health personnel or improving health infrastructure – without which free primary care could overwhelm existing clinics. Private sector growth is another area to watch: The budget focuses heavily on government-led programs, but fostering an enabling environment for private investment is equally important.

Apart from tax reductions and establishing a Development Bank, there is limited discussion of policies to improve the ease of doing business (e.g., regulatory reform, energy reliability for industry beyond addressing energy sector debt). The NDC perspective encourages state intervention, but it should go hand in hand with private sector partnership.

Finally, the budget assumes a lot of governance reforms (PFM, procurement, anti-corruption) will succeed quickly. Enforcement of sanctions for financial mismanagement   is excellent on paper, but Ghana’s past shows enforcement can be inconsistent. Any weakness in governance could lead to a resurgence of arrears or wasteful spending, undermining the consolidation effort. Ensuring that the bold initiatives are backed by solid implementation plans and honest reporting is an area for improvement.

Policy Recommendations

To address the above shortcomings and enhance the 2025 Budget’s effectiveness, I offer the following policy recommendations in line with achieving the government’s objectives:

• Strengthen Revenue Mobilization: The government should deploy an aggressive but realistic revenue enhancement strategy. This includes fast-tracking the digitization of tax systems – rolling out the electronic tax filing and payment platforms by mid-2025 – and ensuring taxpayer education is widespread so that compliance improves.
• The Ghana Revenue Authority should set quarterly targets for recovering arrears through the extended Voluntary Disclosure Program, and publish results to build credibility.
• Additionally, broadening the tax base is crucial: policies to register more businesses in the informal sector and bring them into the tax net (perhaps by simplifying small business tax regimes) should accompany the “Modified Taxation System” mentioned .
• While major new taxes are rightly avoided, closing loopholes and exemptions can raise revenue: for example, swiftly implement the removal of the VAT exemption on non-life insurance and review other tax exemptions (especially in mining, oil, and telecom sectors) to ensure Ghana captures fair value.
• The increase in the mining levy should be coupled with dialogue with mining firms to maintain a stable investment climate. Importantly, enhance property rate collection as hinted in the budget – partnering with local governments to use digital property registers and billing can unlock substantial local revenue without burdening the poor.
• By the end of 2025, the aim should be to lift the tax-toGDP ratio closer to 14-15% (excluding oil) through these efforts, creating more fiscal space.
• Prioritize and Rationalize Expenditures: Given the tight expenditure envelope, prioritization is key. The government should conduct a mid-year review of all new social programs to evaluate their uptake, costs, and impact.
• If certain programs lag in implementation, funds can be reallocated to high-impact areas. For instance, if by mid-year the “No-Fee” tertiary policy uptake is lower than budgeted, surplus funds could bolster basic education infrastructure or clear arrears owed to textbook suppliers.
• The aim is to avoid underspending on critical needs while money sits unused elsewhere. Efficiency in social programs must be improved: for the School Feeding expansion, implementing electronic payment to caterers and community oversight can reduce leakages.
• For the Free Primary Healthcare initiative, the Ministry of Health should issue standard treatment guidelines and cost protocols to providers to prevent cost overruns and ensure quality service.
• In terms of general expenditure, the government can further trim discretionary spending: continuing the policy of limiting new vehicle purchases, foreign travel, and other non-essential overheads for government agencies will save resources. The NDC’s decision to cut down the number of ministers and merge some ministries should be fully carried out, and the resulting savings (on salaries, official perks, etc.) transparently reported.
• Moreover, to handle public sector wages, a realistic but moderate wage agreement should be negotiated – perhaps with productivity-linked bonuses instead of across-the-board raises – to keep the wage bill sustainable while motivating workers.
• If inflation falls faster than expected, there may be room to give real relief to workers in 2026; but for 2025 the focus must be on consolidation.
• Ensure Debt Sustainability and Fiscal Credibility: To solidify the gains in debt reduction, the government should finalize the remaining aspects of debt restructuring as soon as possible – including any outstanding external commercial debt and domestic debt owed to banks or pension funds – in a fair and transparent manner.
• The establishment of an independent Fiscal Council (as proposed) should be expedited ; this council can monitor budget execution and publish unbiased reports on fiscal performance, which will enhance credibility.
• Maintaining a primary surplus of 1.5% of GDP is non-negotiable for debt sustainability, so if revenues underperform, the government should be ready to tighten spending further or identify additional revenue (for example, through one-time asset recoveries or improved dividend collections from state enterprises).
• I also strongly urge and recommend the government to restore a debt limit law (debt-to-GDP cap) through the amended Fiscal Responsibility Act, to bind current and future governments to prudence . On the financing side, developing a strategy to lengthen the maturity of domestic debt will reduce rollover risk – this could involve offering some medium-term bonds targeted at domestic investors (perhaps with partial guarantees or higher coupons to entice non-bank investors back after the debt exchange).
• Engaging Ghana’s development partners for budget support and grants can also ease financing pressures: the government should leverage the positive reception of its reforms to secure concessional loans/grants for specific social programs (education, health) so that these do not all rely on domestic funds. Lastly, improve transparency in fiscal data: the Ministry of Finance must avoid off-budget expenditures and report all arrears and liabilities openly.
• Any accusations of “cooking the figures” can be mitigated by inviting independent audits of key numbers (e.g., the stock of arrears or the true fiscal deficit including energy and financial sector costs) and publishing those findings. This will build trust with both the public and investors, helping to lower Ghana’s risk premium over time.
• Enhance Critical Sector Support: Addressing gaps in sectors like agriculture, education, and health should be an ongoing priority. In agriculture, the government should consider contingency measures such as setting aside a price stabilization fund or emergency input fund using part of the windfall from the increased mining levy or oil revenues.
• This can be used if fertilizer or feed prices spike or if farmers face climate-related losses – thereby protecting the agricultural output and incomes. Extension services should be revitalized at the district level (possibly by recruiting and training more extension officers under the Nation Builders Corps-type scheme) to ensure that initiatives under AETA reach farmers on the ground.
• In education, beyond free access, quality improvements are needed: the budget allocation for textbooks (GH¢564.6 million) should be utilized to ensure every student has the required learning materials by mid-2025. Moreover, part of the GH¢13.85 billion Big Push could build new classrooms and dormitories in areas where Free SHS has led to overcrowding. Regular monitoring of student-to-teacher ratios and infrastructure in schools will inform timely allocation of additional resources if needed.
• For healthcare, the successful rollout of Free Primary Healthcare will require augmenting personnel – the government could deploy medical trainees or engage retired nurses on contract to fill gaps in understaffed clinics. Also, investing in preventive care (public health education on sanitation, disease prevention) will help reduce the burden on clinics, ensuring the program’s sustainability.
• I recommend that government ring-fences some of the NHIS funds specifically for the free primary care initiative and track its performance separately, to maintain financial accountability. Finally, in the energy sector, where legacy debts are a fiscal risk, the budget’s mention of an Energy Sector Recovery Programme should be followed up with action: renegotiating IPP contracts to reduce capacity charges and enforcing efficiency at ECG (with the new private-sector participation in revenue collection) must happen to avoid new arrears. A comprehensive energy sector reform plan, published and monitored, will prevent fiscal slippages from that sector which historically has been a source of unbudgeted expense.
• Improve Transparency and Accountability in Budget Execution: Implementation is often where good budgets falter. To prevent that, the government should put in place strong accountability mechanisms. One idea is to establish a Citizen’s Budget Portal online where the Ministry of Finance publishes quarterly budget implementation reports, including revenues, expenditures by key programs, and status of projects. This would allow the public (and civil society groups) to track progress and flag issues.

The promise to publish a PFM League Table ranking ministries on compliance  should be acted upon – by end of 2025 Q2, publish which MDAs are sticking to their budgets and which are accumulating arrears.

Such transparency will incentivize compliance and allow the Presidency to direct attention to underperforming agencies. Anti-corruption efforts must complement budget execution: empower bodies like the Auditor-General and Parliament’s Public Accounts Committee to conduct real-time audits of big-ticket programs (for instance, the Big Push projects and the free sanitary pads distribution).

If mismanagement is detected – e.g. funds for a school project not yielding results – swift administrative action or prosecution should follow, sending a clear message that every cedi must be used as intended. The budget also calls for amending the procurement law to create an Independent Value-for-Money Office  – this should be prioritized so that all major contracts in 2025 (especially under infrastructure projects) are vetted for cost-effectiveness.

By improving transparency and accountability, the government will not only prevent waste but also build public confidence, which is essential for the difficult reforms to succeed. The execution of this budget needs a “whole-of-government” approach with constant monitoring, and these measures will help achieve that.

In conclusion, Ghana’s 2025 Budget represents a decisive and positive step towards economic recovery and social development. I am encouraged to see a fiscal plan that boldly invests in people – through education, healthcare, and jobs – while also embracing the discipline required to stabilize the economy.

The budget’s strengths, notably its substantial social interventions and commitment to fiscal consolidation, position it as a tool that can both restore hope and confidence in the economy and deliver tangible improvements in citizens’ lives.

If successfully implemented, the measures to provide free primary healthcare, relieve students and households of burdensome fees, create jobs, and build infrastructure will improve living standards and contribute to a more inclusive economy.

Likewise, the efforts to rein in the deficit, restructure debt, and enforce financial accountability will lay the groundwork for sustainable growth, lower inflation, and a more resilient macroeconomic environment.

However, the ultimate impact of the 2025 Budget will depend on prudent execution and continual refinement. The critique above has highlighted that certain assumptions (especially on revenue) need to be managed carefully and that risks (such as debt servicing pressure or implementation capacity constraints) must be proactively mitigated. As Ghana navigates this recovery, it will be important for the government to remain flexible – monitoring outcomes and adjusting policies where necessary.

For instance, if revenues fall short, the government should be ready to prioritize expenditures or seek new income sources in a way that does not derail the social agenda. If particular programs are not delivering results, a frank assessment should lead to policy tweaks or reallocations.

This adaptive management, combined with robust stakeholder engagement (continuing the consultative approach the Minister undertook with traders, youth, etc., during budget preparation  ), will help in maximizing the budget’s benefits.

Finally, a strategic way forward would involve institutionalizing the gains from this budget. The

President and his economic team should use the 2025 Budget as the first building block of a multiyear strategy: by 2028, the aim is to have a fiscally stable Ghana with debt under control (the budget envisions a small surplus by 2028 ) and a stronger social foundation (healthier, bettereducated citizens contributing productively).

To that end, reforms such as the Fiscal Responsibility Act amendments, the establishment of the Fiscal Council, and the planned Non-Tax Revenue legislation  should be pushed through swiftly so that future budgets are constrained by law to follow the path of responsibility and transparency.

Continuity in the pro-poor programs is also key – mechanisms should be set up to protect budgets for education and health in future years, perhaps through legislation or constitutional provisions for minimum spending floors. This will ensure that short-term fiscal tightening does not come at the expense of long-term human capital investment.

In essence, the 2025 Budget can significantly improve Ghana’s economic outlook and social development prospects if its strong points are effectively realized and its weak points diligently addressed. With strong political will and oversight from the highest levels (including Your Excellency, the President), Ghana can emerge from its economic reset with a more prosperous, equitable, and resilient economy.

The task ahead is challenging, but this budget has set the right course – it must now be steered with commitment and integrity to achieve the Ghana we all want.

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