In response to recent natural disasters, the Mahama government, has allocated GH₵442.5 million to the victims of the Akosombo spillage and tidal wave, but did not explain how and when the sum would reach the intended beneficiaries.
The breakdown, includes GH₵242.5 million to support victims of the Akosombo Dam spillage, who have spread to parts of the Eastern Region, Greater Region, and Volta Region.
Additionally, GH₵200 million, has been set aside to assist victims of the tidal wave disaster that recently displaced residents of Agavedzi and surrounding communities in the Ketu South constituency of the Volta Region.
The Finance Minister, Dr Cassiel Ato Forson, announced this, saying the total appropriation for the 2025 fiscal year amounts to GH₵290.9 billion.
Presenting the 2025 Budget to Parliament, Dr Forson, provided an overview of the government’s revenue and expenditure projections for the year.
“Mr Speaker, Total Revenue and Grants for 2025 is projected at GH₵223.8 billion or 17.2% of GDP, up from GH₵186.5 billion or 17.4% of GDP. The projection is underpinned by non-oil revenue measures, which are expected to yield at least 0.5 percent of GDP,” Dr Forson stated.
He further explained that total expenditures for 2025 have been programmed at GH₵269.1 billion, representing 20.7% of GDP, down from GH₵279.2 billion or 26.0% of GDP in 2024.
“Total Expenditures (Commitment) for 2025 has been programmed at GH₵269.1 billion (20.7% of GDP), down from GH₵279.2 billion (26.0% of GDP) in 2024,” he noted.
Primary expenditure on a commitment basis, which excludes interest payments, is projected at GH₵204.7 billion, representing 15.8% of GDP in 2025. This marks a significant decline from GH₵232.4 billion, or 21.7% of GDP, in 2024.
“Primary Expenditure on a commitment basis (expenditures net of interest payments) is projected at GH₵204.7 billion, representing 15.8% of GDP in 2025, a significant decline from GH₵232.4 billion, representing 21.7% of GDP in 2024,” Dr Forson explained.
Based on the resource allocations for the 2025 fiscal year, the total appropriation for the year ending 31st December 2025 is GH₵290,971,212,435.
“Mr Speaker, based on the resource allocations for the 2025 fiscal year, the total appropriation for the year ending 31st December 2025 is GH₵290, 971, 212, 435,” he said.
The Finance Minister assured Ghanaians that the government would focus on reducing the fiscal deficit and public debt by cutting spending rather than relying solely on tax measures. Dr Forson highlighted the concerns raised by Ghanaians during the recent National Economic Dialogue.
“Mr Speaker, Ghanaians, through the recent National Economic Dialogue, have expressed a clear desire for the fiscal deficit and public debt to be reduced through cuts in government spending rather than through only tax measures. We wholeheartedly agree!” he stated.
He emphasised that the government will align its expenditures with the country’s fiscal realities, adding, “Whoever pays off their debt gets rich.”
To achieve this, Dr Forson, announced a three-pronged approach, starting with the 2025 budget. The strategy, includes recalibrating fiscal adjustments and implementing economic reforms described as “shock therapy” to restore stability and growth.
In a significant move designed to alleviate the financial strain on households and businesses, the government has unveiled plans to present the necessary instruments for abolishing several taxes in the 2025 budget.
The Finance Minister emphasised the positive impact these measures will have on disposable incomes and business growth.
“Mr Speaker, we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the ‘Betting Tax’; we will abolish the Electronic Transfer Levy (E-Levy) of 1%; we will abolish the Emission Levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policy; and we will abolish the 1.5% withholding tax on winnings of unprocessed gold by small-scale miners,” Dr Forson announced.
He further explained that the removal of these taxes is intended to ease the burden on households and improve their disposable incomes.
“Mr Speaker, the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance,” he stated.
The government also announced substantial allocations in the 2025 budget to tackle various urgent needs and stimulate economic growth, highlighting the diverse areas that will benefit from these allocations.
“Mr Speaker, we will provide a Cedi equivalent of US$279 million as a revolving fund for the Ghana Gold Board (GOLDBOD) to be able to purchase and export at least three tonnes of gold per week from small-scale miners,” Dr Forson announced.
This move is expected to support the small-scale mining sector and boost the country’s gold exports.
Additionally, Dr Forson revealed that GH₵13.85 billion has been allocated for the Big Push Programme, a significant infrastructure initiative aimed at driving economic growth and development across the country. The programme will focus on key projects that enhance transportation, energy, and social infrastructure.
To support education, the government has allocated GH₵499.8 million for the No-Academic-Fee policy for all first-year students in public tertiary institutions under the ‘No-Fees-Stress’ initiative. This policy aims to alleviate the financial burden on students and their families, ensuring greater access to higher education.
Furthermore, the government has committed GH₵292.4 million to commence the distribution of free sanitary pads to female students in primary and secondary schools. This initiative is designed to promote menstrual hygiene and ensure that female students can attend school without interruptions.