The upcoming 2025 budget, scheduled for presentation on Tuesday, March 11, will mark a significant shift in Ghana’s fiscal policy, with the government poised to abolish the controversial E-Levy and the COVID levy. These tax cuts form a cornerstone of the administration’s 120-day Social Contract, a comprehensive plan encompassing 26 pledges designed to revitalize the economy and alleviate the financial strain on citizens. The abolition of these levies is not only a fulfillment of campaign promises but also a strategic move to stimulate economic activity by increasing disposable income and encouraging spending. This action signifies the government’s recognition of the public’s concerns regarding these taxes and a commitment to fostering a more favorable economic environment.
Beyond the elimination of the E-Levy and the COVID levy, the government’s 120-day Social Contract promises further relief for Ghanaians. The 10% tax on bet winnings and the emissions levy are also slated for removal within the first 90 days of the new administration. These additional tax cuts are anticipated to further boost economic activity and reduce the financial burden on specific sectors, demonstrating the government’s multi-faceted approach to economic reform. This aggressive timeline for implementation underscores the urgency with which the administration is addressing these economic challenges and its dedication to delivering on its promises.
The budget presentation will also detail plans for a comprehensive review of taxes and levies on vehicles and equipment imported for industrial and agricultural purposes. This review is crucial for stimulating growth in vital sectors of the Ghanaian economy. By reducing import duties, the government aims to encourage investment in these key areas, fostering job creation and enhancing productivity. This approach aligns with the broader goal of revitalizing the economy by targeting specific sectors crucial for long-term sustainable growth.
Furthermore, the 2025 budget will introduce initiatives geared towards long-term economic transformation and social development. The launch of the 24-Hour Economy Policy is a key component of this strategy, aiming to maximize economic output by extending operating hours and increasing employment opportunities. This innovative approach seeks to leverage existing resources and infrastructure to create a more dynamic and globally competitive economy. Coupled with the planned implementation of a ‘No-Academic-Fee’ policy for first-year students in public tertiary institutions, this demonstrates the government’s commitment to investing in human capital and expanding access to higher education.
The establishment of a Women’s Development Bank is another significant element of the upcoming budget, aimed at empowering women economically and promoting gender equality. This institution will provide targeted financial services and support to women entrepreneurs, facilitating their access to capital and fostering greater economic participation. This initiative reflects the government’s recognition of the crucial role women play in economic development and its commitment to creating an inclusive and equitable financial system. Alongside these measures, the budget will outline key job creation programs designed to address unemployment and provide opportunities for Ghanaians across various sectors.
The Minister of State for Government Communications, Felix Kwakye Ofosu, has expressed confidence that the 2025 budget will fully deliver on the promises outlined in the 120-day Social Contract. He emphasized the government’s commitment to transparency and accountability, assuring the public that the detailed budget presentation will reflect the specific commitments made during the campaign. Acknowledging concerns regarding currency depreciation, Ofosu highlighted the budget’s inclusion of both short-term and long-term measures to address the underlying weaknesses contributing to this challenge. These measures, developed in consultation with development partners and stakeholders, underscore the government’s dedication to stabilizing the currency and fostering a more robust and resilient economy. The 2025 budget, therefore, represents a crucial step towards fulfilling the government’s vision for a prosperous and equitable Ghana.
