The 2025 Budget Statement and Economic Policy presented by Ghana’s Finance Minister, Dr. Cassiel Ato Forson, outlines a comprehensive strategy focused on economic revitalization, job creation, and widespread prosperity. The budget prioritizes tax relief, infrastructural development, youth empowerment, educational enhancements, and targeted social interventions, reflecting the government’s commitment to inclusive growth and addressing critical societal needs. This budget represents the NDC government’s first fiscal policy blueprint since assuming office and aims to deliver on key campaign promises while laying the foundation for sustainable economic progress.
A cornerstone of the budget is the elimination of several taxes previously deemed regressive. These include the COVID-19 Levy, the 10% tax on betting winnings, the 1% E-Levy, the Emission Levy, VAT on motor vehicle insurance policies, and the 1.5% withholding tax on unprocessed gold winnings by small-scale miners. This move is intended to alleviate the financial burden on citizens, stimulate economic activity, and promote greater fairness within the tax system. Furthermore, the government allocated GH¢100 million for Assembly Member allowances, acknowledging their vital role in local governance.
Central to the government’s economic revitalization strategy is the “Big Push” policy, a flagship program focused on strategic infrastructural development. With an allocation of GH¢13.85 billion, this initiative aims to drive sustainable economic growth under the 24-Hour Economic Policy. This substantial investment underscores the government’s belief in infrastructure as a catalyst for economic expansion, job creation, and improved living standards.
Youth empowerment and skills development also feature prominently in the budget. Recognizing the importance of equipping young people with the tools to succeed in the modern economy, the government earmarked GH¢300 million for the National Apprenticeship Programme, GH¢100 million for the ‘Adwumawura’ Programme, and GH¢100 million for the National Coders Programme. These initiatives aim to enhance employability, foster innovation, and provide pathways to meaningful careers for Ghana’s youth.
The budget reflects a strong commitment to accessible and quality education. The government has pledged a dedicated funding source for the Free Senior High School Programme, ensuring its long-term sustainability. Furthermore, free tertiary education will be extended to Persons with Disabilities (PWDs) by uncapping the GETFund. A significant allocation of GH¢499.8 million has been made for the No-Academic-Fee policy for all first-year students in public tertiary institutions under the ‘No-Fees-Stress’ initiative. These measures aim to remove financial barriers to education, promoting inclusivity and empowering future generations.
The budget also addresses crucial social needs through targeted interventions. An allocation of GH¢292.4 million has been made to commence the distribution of free sanitary pads to female students in primary and secondary schools, promoting hygiene and educational access for young girls. The government has also committed GH¢242.5 million to support victims of the Akosombo dam spillage and GH¢200 million for victims of the tidal wave disaster in the Ketu South constituency, demonstrating a commitment to disaster relief and community support. Other social interventions include increasing the School Feeding Programme budget to GH¢1.788 billion, reflecting a per-meal cost increase to GH¢2.00. Finally, GH¢203 million has been allocated for Teacher Trainee allowances and GH¢480 million for Nursing Trainee allowances, recognizing the vital contributions of these professions. In summary, the 2025 budget presented by the Ghanaian government outlines a comprehensive plan for economic recovery, job creation, and social progress. Through strategic investments in infrastructure, education, youth empowerment, and social welfare, the government aims to build a more prosperous and inclusive future for all Ghanaians.
