Finance Minister Dr. Cassiel Ato Forson presented the 2025 Budget Statement and Economic Policy with the theme “Resetting the Economy for the Ghana We Want” in Parliament on Tuesday, March 11, 2025.
During the presentation, the minister said the budget is the foundation upon which the Mahama government would build a more resilient and equitable society.
While presenting Ghana’s economy as one in “deep crisis”, he described the budget as a blueprint for growth, stability, and opportunity.
The Ghana Report highlights some standout points in the budget that the Majority Caucus touts as a fulfilment of the government’s promises but described as an ‘Azaa budget’ (deceptive budget) by their Minority counterparts in Parliament.
- Debt Service Obligations
The finance minister revealed that over the next four years, the country is expected to pay about GH¢150.3 billion, representing 11.6% of GDP in domestic debt service obligations alone.
Beyond the domestic maturities, Ghana also faces significant external debt service obligations totalling US$8.7 billion, representing 10.9% of GDP, all with a heavy concentration in 2027 and 2028.
- Scrapping of taxes
Dr. Ato Forson announced a bold move by the government to abolish the Electronic Transaction Levy (E-Levy) and the 10% tax on lottery winnings, commonly referred to as the betting tax.
The government also plans to abolish the widely unpopular COVID-19 Health Levy, the Emission Levy on industries and vehicles, VAT on motor vehicle insurance premiums, and the 1.5% withholding tax on the sale of unprocessed gold.
According to the minister, this is to ease the tax burden on citizens and create a fairer, more inclusive financial system.
- Total expenditure programmed at GH¢269.1 billion
The finance minister announced that the government is expected to spend a total of GH¢269.1 billion in the 2025 fiscal year.
He explained: “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 added that based on the estimates for total revenue & grants and total expenditure (commitment), the projected “overall balance on a commitment basis is a deficit of GH¢43.8 billion, equivalent to 3.1 percent of GDP”.
According to him, the corresponding primary balance on a commitment basis is a surplus of GH¢ 20.3 billion, equivalent to 1.5 percent of GDP.
On a cash basis, he explained that the overall balance is a deficit of GH¢56.9 billion, equivalent to 4.1 percent of GDP.
He also stressed that the cash deficit of GH¢56.9 billion is expected to be financed from both foreign and domestic sources.
- GETFund uncapped
In his presentation, Dr. Ato Forson also revealed that the Capping and Realignment Act will be amended to remove the limit on the Ghana Education Trust Fund (GETFund).
This, he said, makes available dedicated funds for the full financing of free secondary education and free tertiary education for Persons with Disability (PWDs).
By uncapping the GETFund, the government will be making available an additional GH¢4.1 billion, specifically for the financing of the free secondary education programme and other related expenditures.
- GH¢3.5 billion allocated for the Free Senior High School Programme
In fulfilling the government’s promise not to abolish the very popular Free Senior High School policy, the minister said they have GH¢3.5 billion for its operation in 2025.
This will be fully funded by the GETFund.
- Payment of salaries for pharmacists employed in 2023
Finance Minister Ato Forson announced that the government will pay the salaries of some 321 pharmacists who were employed since June 2023.
According to the minister, he discovered during an engagement with the youth that the pharmacists had not received their salaries since they were employed.
- National Health Insurance Levy (NHIL) has been uncapped
The minister also announced that the government has uncapped the National Health Insurance Levy (NHIL), and an amount of GH¢9.93 billion has subsequently been programmed for the National Health Insurance Scheme (NHIS).
The allocated amount would cater for claim payments, essential medicines, vaccine payments, Free Primary Healthcare, the Ghana Medical Care Trust (MahamaCares), and bridging of the USAID financing shortfall, among others.
- Free sanitary pads for schoolgirls
In another significant move, the minister said the government has allocated GH¢292.4 million to commence the distribution of free sanitary pads to female students in primary and secondary schools.
This is to tackle menstrual poverty and its accompanying challenges for girls in Ghana.
- Women’s development bank
One measure by the government to boost economic activity is establishing a Women’s Development Bank to support female-owned businesses.
During his presentation, Dr. Ato Forson stated, “Mr. Speaker, we have also allocated GH¢51.3 million as a seed fund for the establishment of the Women’s Development Bank”.
This is in fulfilment of one of their major campaign promises.
- Allocations for Teacher and Nursing Trainee allowances
He also said that the government has allocated GH¢203 million for the payment of the teacher trainee allowances and another GH¢480 million for nursing trainee allowances.
- Payment of monthly allowance to all Assembly Members
In a significant policy update, the finance minister mentioned that GH¢100 million has been set aside for the monthly allowances of all assembly members, recognising their essential contribution to local governance.
- Increment in LEAP benefits
The government has increased the benefits for the Livelihood Empowerment Against Poverty (LEAP) by 30.8% from GH¢728.8 million to GH¢953.5 million.
Dr. Ato Forson added that benefits have been indexed to inflation and the number of beneficiary households will be increased from 350,000 to 400,000 from July 2025.
- Relief for tidal wave and Akosombo dam spillage victims
The Finance Minister also addressed the recent disasters affecting communities, assuring Parliament that GH¢200 million has been allocated to the Ministry of Works and Housing to support victims of tidal waves in Agavedzi and surrounding areas in the Ketu South constituency.
The government has allocated GH¢242.5 million to support victims of the Akosombo dam spillage.
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