2025 Budget: Mahama Government Presents First Budget Statement Amid Tax And Energy Sector Concerns
The Mahama administration will present its first budget to Ghanaians in Parliament later today (March 11, 2025) with stakeholders expecting announcements that will ease the tax burden and drive economic growth.
A recent KPMG survey painted a fair picture of the most desired outcome from the John Mahama government's first budget - reduced taxes.
The pre-budget survey noted that over 50% of businesses are calling for the removal of the electronic transfer levy (e-levy) and the COVID-19 levy.
Source: Twitter
This desire was reflected in the expectations of key business players that YEN.com.gh spoke to.
David Amoateng, the President of the Traders Advocacy Group, said the scrapping of taxes considered to be a nuisance was non-negotiable.
"We counted 22 different taxes and levies at the port so all these things have to be taken care of."
The Executive Secretary of the Importers and Exporters Association, Samson Asaki Awingobit, is hoping much more that the electronic transfer levy is scrapped.
He called for the rationalisation of taxes and even called for reductions in the value-added tax as well as a fixer duty rate for importers.
Awingobit was also very bullish about the budget leaving smiles on various business stakeholders.
"We have confidence that [the finance minister], who is well versed with the economy and well versed in fiscal policy, will do a good job and abolish the nuisance taxes that we have been calling for successive taxes.”
In line with Awingobit's sentiment, the KPMG survey noted that 80% of respondents were confident that the new government’s policies in the 2025 budget would drive economic recovery.
This optimism is largely based on anticipated tax relief and the successful rollout of the 24-hour economy. The government has already assured that the e-levy and the betting tax are in line to be scrapped in the budget.
Mahama's 2025 Budget: What Finance Minister said
Finance Minister Cassiel Ato Forson has reminded citizens that Ghana's financial situation remains precarious.
He stressed that the economy was still in distress, echoing a similar caution from when he was vetted for the finance ministry portfolio.
Speaking on an X Space on March 9, Forson stated that the government was committed to implementing policies that would foster economic stability.
“What we can do is to put together a framework where there will be a stable exchange rate, stable inflation, and a stable economy."
Source: Facebook
An applied economist and policy analyst, Alfred Appiah, outlined some key issues he will be monitoring during the presentation to Parliament.
He cited the projected fiscal deficit and how it compared to prior years as an area of interest.
"That would suggest to me how fiscally disciplined the government intends to be."
Appiah also noted that he would be comparing the compensation budget to previous years, particularly in areas like the government machinery.
His questions included how the purported leaner government was reflected in compensation and how much the country was saving.
With some major taxes expected to be scrapped in the budget, Appiah reminded that there would be a big hole that needed filling.
This has led some analysts to believe the Mahama administration's first budget will deliver significant spending cuts, as Bloomberg reported.
"I will be looking at how the government intends to make up the gap created from scraping taxes and also fund its own campaign promises," said Appiah.
"Since the government is planning to scrap taxes and still invest in projects, there’s a chance that it may overstate revenue to signal that all is well."
Ghana's 2025 Budget: Dumsor and energy
With the talk of taxes and spending cuts, it is easy to forget that the government is also dealing with significant power challenges.
Karikari Kwagyan Achireko, the director of Corporate Strategy at the Africa Sustainable Energy Centre noted that mounting debts, fuel supply constraints, and inefficiencies within state-owned entities such as the Electricity Company of Ghana had placed the sector in crisis mode.
"Ghana’s energy sector is in deep financial distress, with an annual shortfall projected to reach $2.2 billion in 2025," Achireko noted.
He is concerned that if urgent interventions was not taken, the cumulative financial deficit could exceed $9 billion by 2026.
Achireko indicated that he expected the budget to introduce financial restructuring measures, including enhancing the Electricity Company of Ghana’s revenue collection.
He warned that without a financial restructuring plan, Ghana risks falling into a cycle of perpetual bailouts, as seen with $2.1 billion in government transfers to the sector in 2023 and 2024.
Ultimately, Achireko stressed that Ghana’s energy sector is at a defining moment.
"With mounting debts, struggling state utilities, fuel shortages, and slow renewable energy adoption, the upcoming budget will be a litmus test for the government’s commitment to reform."
New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!
Source: YEN.com.gh
