The nation awaits pivotal economic announcements as Finance Minister Dr. Cassiel Ato Forson prepares to present a high-stakes budget on March 11, 2025. This financial blueprint is expected to detail President John Mahama’s ambitious plan to "reset" Ghana’s economy, tackling urgent issues like inflation, currency instability, and mounting public debt.
During a virtual town hall discussion with youth on X (formerly Twitter) on March 8, Dr. Forson outlined several priority areas likely to shape the government’s fiscal policy. Among these is a significant boost to the School Feeding Program, which will see funding increased by 33%, raising the daily allocation per child from GHC1.50 to GHC2.00. Other key focus areas include enhanced investments in agriculture for food security, commitment to sports development projects, and target inflation control aimed at reaching 8% (±2).
Dr. Forson confirmed the government’s intention to implement sweeping expenditure cuts across ministries and resume external debt repayments. This shift has already sparked debate among policymakers and the public, with questions raised surrounding the impact on public services and sector employment. The government intends to prioritize fiscal discipline even as it maintains key social programs.
Julius Nana Yaw Gyimah, Executive Director of the Centre for Public Policy and Economic Analysis, weighed in on the budget's potential impact during an interview on 3FM’s Midday News on March 10. He stated, "We need programs...protect the poor and vulnerable...reduce expenditure, particularly on compensation for sector workers." These comments underpin the need for careful consideration of how spending cuts might influence the most vulnerable populations.
The upcoming budget presentation is expected to ignite intense discussions as the government attempts to navigate the balance between austerity measures and economic growth. While commitments to external debt repayment may provide reassurance to investors, significant concerns remain about the ramifications of spending cuts on public services and employment.
Adding to the mix is Richard Ahiagbah, Director of Communications for the New Patriotic Party (NPP), who on March 10 commended Finance Minister Ato Forson for his political optics, stating, "The finance minister has demonstrated excellent political optics...some existing taxes will be withdrawn, as H.E. John Dramani Mahama promised." Despite the anticipation among citizens for proposed tax reliefs, Ahiagbah also emphasized the need to address key concerns, including alternative revenue sources to compensate for withdrawn taxes, wise allocation of government expenditure cuts, and effective strategies for boosting production and job creation.
Importantly, the government has set ambitious goals, aiming to achieve a tax revenue to GDP ratio of 18%, up from the 13% level when they assumed office. How this will be harmonized with proposed tax cuts remains front-of-mind for many observers.
Meanwhile, as the nation prepares for the budget address, Kojo Oppong Nkrumah, the Member of Parliament for Ofoase-Ayirebi, has cautioned against any manipulation of economic data for political gain. He remarked, "The economic record of this country is not determined by the words of any politician. I believe the Finance Minister should resist any pressure from political forces to distort the numbers..." Ahead of the budget, he underscored the importance of relying on regularly published economic data to inform national discussions, asserting the need for honesty to build on any societal progress made.
Dr. Forson, addressing youth at his recent engagements, emphasized his administration's commitment to transparency about Ghana’s financial situation. He acknowledged, "Let’s not deceive ourselves...our economy is still in distress," reinforcing the narrative of urgency surrounding the stability of national finances. He stressed the importance of returning to fiscal stability, outlining policies aimed at controlling inflation, stabilizing exchange rates, and fostering predictability within the economic sector.
"What we can do...is to put together a framework where there will be stable exchange rates, stable inflation, and a stable economy," he asserted, emphasizing the role of reduced domestic borrowing to free up resources for private sector growth.
Dr. Forson also dismissed claims about his consultations with the public being merely symbolic. “I do not take the people of Ghana for granted...I am here because I want to hear your take—ignore the propaganda out there,” he stated firmly, demonstrating his intent to engage citizens as active participants in the shaping of economic policies.
With these various strands of commentary interwoven, the anticipation for the upcoming budget presentation is heightened. This budget will be instrumental not only in addressing Ghana's economic challenges but also as a litmus test for the administration’s resolve and capability to govern during turbulent financial times. Simultaneously, it will serve as pivotal moment for assessing how the government balances public service preservation with fiscal needs.