Last Tuesday, the government submitted the state budget statement in 2025 with Finance Minister Dr. Caciel at Forson to the people of Ghana in the assembly of representatives of the people of Parliament.
According to Article 179 of the Constitution of 1992 and Article 21(3) of the Public Financial Management Act of 2016 (Article 921), the President is mandatory on behalf of the President, and it is mandatory to place government budget statements and economic policies in Parliament before Congress.
The presentation focuses primarily on providing an overview of a manifesto that expands the economic recovery from what the Minister described as a crisis economy and expands to creating a climate-friendly entrepreneurial nation to address unemployment and import substitution.
Ghana faces many challenges the government has committed to address: resets. These include economic issues, corruption, environmental concerns, and social issues.
Economic challenges include unemployment, gallop inflation, slowing economic growth, lack or limiting access to credit, and inadequate infrastructure development.
There are also challenges within the social sector regarding high levels of poverty, income inequality, inadequate healthcare systems, disparities in the field of education, and gender inequality.
The 2025 budget statement seeks to address some of the key challenges Ghanaians face. For example, the economic recovery and fiscal responsibility aspects of the budget are growing. The budget highlights a roadmap for an economic recovery that focuses on financial prudence to restore macroeconomic stability and boosts investor confidence. This approach aims to balance the necessary financial tensions with sustainable growth strategies.
The Minister said Ghana’s debt management remains a burden, saying, “The country is expected to pay around 15.03 billion over the next four years, accounting for 11.6% of its domestic debt obligations.
Additionally, external debt services obligations will be adjusted by $8.7 billion over the next four years, peaking at $2.5 billion in 2027 and $2.4 billion in 2028. The budget recognizes these challenges and outlines measures to effectively manage and mitigate debt burdens.
Ghana’s debt situation requires urgent and strategic action. Combining strong diplomacy, economic reform and international engagement, Ghana can successfully negotiate debt relief and set the path to long-term economic stability.
The country’s enormous foreign debt remains a major challenge affecting economic growth, currency stability and social development. To address this issue, the state can consider a combination of short-term relief measures and long-term structural reforms. Here are some important strategies:
Can more practical measures and deeper engagement with international lenders such as the International Monetary Fund (IMF), the World Bank, China, and other private bonds be able to restructure debt, extend repayment periods, and negotiate lower interest rates? How many of these horrible debt figures do we have in our books?
Since 1992, all budgets have been trying to address the issue of tax reform. As mentioned before, much has not been achieved in this direction. In a move to reduce tax burden on citizens and stimulate economic activity, the government has abolished the 1% Covid-19 health recovery collection. The decision aims to address public concerns about collection and to promote disposable income for Ghanaians.
Symbolically, the budget was presented in a Ghana leather briefcase designed by local artisan Tonyi Senaya of Horseman. The gesture highlights the government’s commitment to promoting local industry and independence, along with the agenda of “purchase Ghana and wear Ghana” . This is good news for normal Ghanaians if practical measures hub implementation.
The decentralization of economy, skill development and entrepreneurship was also noticeable. It sounds great to provide allowances to council members, and that 80% of the district council’s common fund is sent directly to the assembly. This is to provide direct access to funding for local development programs.
Several important national economic issues have also been addressed, including the expansion of tax systems, which has been a source of trouble for the nation. The statement is made on almost every budget that has been read since the launch of the four republics. This has been extremely difficult for all consecutive governments, if not impossible.
The Minister also announced the government’s intention to reintroduce the sacrifices of all public roads in the country that were abolished by the previous government about three years ago. Ghana’s annual road toll revenue was approximately 72 million Ghana Cedis (GH¢) before the 2022 budget abolished the casualties.
The 70-page budget statement also recognizes the need for job creation and value creation. It will restore the country’s hopes for democracy, renew its trust in civil servants, and help all Ghanaians to reach their full potential.
According to the Minister, the government is to create a new Ghana for future generations by providing reliable hands to vulnerable people, especially women and young people, and stimulating demand by patronizing Ghana Made in Gugger products under a 24-hour economic policy.
The much-anticipated issue in the statement was the funding of free high schools. For the NDC government, the comprehensive concern about free secondary education is its lack of quality and dedicated sources of funding. According to the Minister, the Ghana Education Trust Fund (GETFUND) will be used to fully fund free high school education. First, the budget for the free secondary education program is 3.5 billion.
According to the World Bank’s Development Indicator Collection, Ghana’s higher education alumni were reported in 2018 at 109,874. Less than 3% of these have been absorbed into the formal sector.
The omnipotent 24-hour economy aimed at stimulating economic growth by operating 24/7 with three shifts of 8 hours each, each, is a national economic reset tool that needs to be adopted by all.
The government’s $10 billion “big push” policy is a policy for strategic infrastructure development to open the country and promote sustainable economic growth and transformation under a 24-hour economic policy.
Job creation is one area where successive governments have failed to achieve all forms of success. According to the Census and Economic Information Centre (CEIC), Ghana’s unemployment rate is at an average rate of 5.73%. In December 2024, the figure rose to 4.53% from the 4.12% figure in December 2023.
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The new opposition Patriotic Party (NPP) vehemently opposes the statement. For them, there is no need to establish a brick and mortar bank for women. Opposition parties believe the amount dedicated to the bank as a 51.3 million Ghana Cedis seeds amount is ridiculous against the backdrop of the country’s female population and its needs.
Opponents also oppose the government’s economy is at stake, citing debt levels, percentage growth rates, and the amount of protections in import rates as the NDC is stronger than what portrays Ghanaian masses. They argued that the $8.9 billion reserved import cover for four months was better than what NDC left in 2016.
Opposition parties also lamented the minister’s silence on retirement costs, including energy and water charges, and questioned why the NDC government introduced VAT in insurance.
In the Minister of Finance, “Budgets are not just numbers, but blueprints of growth, stability and opportunity.” So, is it not rhetoric, it restores our belief in the economy, promotes innovation, and raises all Ghanaians?
Overall, it is an approach worthy of the agenda of resetting the country. For now, it remains a document. Let’s help us all make it happen.
