2025 Budget: 10 Key Highlights From Ato Forson’s Presentation To Ghana's Parliament
Finance Minister Cassiel Ato Forson delivered the maiden budget of the Mahama administration. YEN.com.gh breaks down some major highlights from the budget.
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Finance Minister Dr Cassiel Ato Forson has announced a total appropriation of GH¢290.9 billion for 2025.
Presenting the budget to Parliament, Forson also made some significant policy announcements to steer Ghana's economy back in the right direction.
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"This budget is not just about numbers - it is a blueprint for growth, stability, and opportunity."
Major highlights from Ghana's 2025 budget
Shock therapy to the economy
Forson set the tone by saying the government will not compromise in its efforts, however drastic, to save the economy. He described it as shock therapy for the economy. The minister said this would be a show of good faith.
"We are implementing a form of 'shock therapy' to the economy by making significant spending cuts this year, thereby reducing the government’s financing needs and frontloading fiscal adjustment."
Scrapping of 1D1F, other Akufo-Addo government programmes
In a bid to cut wasteful expenditure on inefficient and duplicative programmes the government panned GhanaCARES, the YouStart and the One District One Factory.
The government also reassigned the functions of the Development Authorities to the District Assemblies.
Removal of so-called nuisance taxes
The government announced the scrapping of the controversial Electronic Transfer Levy (E-levy). Other taxes to be jettisoned were the betting tax and the emissions levy.
Forson also indicated that there would be major VAT reforms, including the scrapping of the COVID-19 levy, another controversial Akufo-Addo era revenue measure.
As part of the VAT reforms, there will also be a reversing the decoupling of the Ghana Education Trust Fund and the National Health Insurance Levy, reducing the effective VAT rate for households and businesses; reversing the VAT flat rate regime and upwardly adjusting the VAT registration threshold to exempt micro and small businesses from the collection of VAT.
Funding for the GoldBod
Forson also announced that $$279 million is being used as a revolving fund for the Ghana Gold Board.
This is to enable it to purchase and export at least 3 tonnes of gold per week from small-scale miners.
The GoldBod is meant to enhance the generation and accumulation of forex to support the stability of the cedi.
Consolidating Energy Sector Levies Act
Still on taxes, Forson said the government would review the Energy Sector Levies Act (ESLA) to consolidate the Energy Debt Recovery Levy, Energy Sector Recovery Levy (Delta Fund), and Sanitation & Pollution Levy into one levy.
The government plans to use the proceeds to cater for the energy sector shortfalls and service the inherited debt service obligation.
Ghana Labour Export Programme
The government has plans to formalise the export of Ghanaian labour abroad.
Forson said this will ensure a structured and beneficial system for Ghanaian workers seeking employment abroad.
"This will also reduce illegal migration, prevent worker exploitation, and maximise the economic benefits of remittances and boost foreign exchange earnings."
Uncapping of critical funds
Forson announced that critical development funds like the GETFund, the Road Fund, and the NHIL will be uncapped and will receive their full allocation.
The minister said these were part of expenditure measures that will be implemented in the 2025 fiscal year and the medium-term to support the fiscal consolidation agenda.
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Increased funding for Free SHS
Forson said the government would address funding challenges of the Free Senior High School policy with the uncapping of the GETFund.
"This makes available dedicated funds for the full financing of free secondary education."
Forson said the budget for the free secondary education programme is GH¢3.5 billion but by uncapping the GETFund, an additional GH¢4.1 billion will be made available for the financing of the free secondary education programme and other related expenditures.
Allocation for No-Academic-Fee policy
GH¢499.8 million has been allocated for the No-Academic-Fee policy for all first-year students in public tertiary institutions under the ‘No-Fees-Stress’ initiative.
Related to this, Forson also said uncapping the GETFund would make available dedicated funds for the full financing of free tertiary education for Persons with Disability.
Allocations for Volta disasters
GH¢242.5 million has been allocated to support victims of the Akosombo dam spillage, Dr Forson also confirmed.
Additionally, an amount of GH¢200 million has been set aside to assist victims of the tidal wave flooding that displaced some coastal residents in the Ketu South district.
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Source: YEN.com.gh
