10 major highlights from the 2025 budget statement

2025 Budget: Key Highlights from Ato Forson’s Presentation to Parliament

Finance Minister Cassiel Ato Forson presented the first budget of the Mahama administration. The total appropriation for 2025 is GH¢290.9 billion. Forson aims to steer Ghana's economy back on track with this budget.

He described it as a blueprint for growth, stability, and opportunity. Forson emphasized that the government will not compromise in its efforts to save the economy. He referred to this approach as "shock therapy."

Cuts to Inefficient Programs

To reduce wasteful spending, the government has scrapped several programs. These include GhanaCARES, YouStart, and One District One Factory (1D1F). The functions of Development Authorities have been reassigned to District Assemblies.

Removal of Controversial Taxes

The budget includes the removal of several taxes. The Electronic Transfer Levy (E-levy) will be scrapped along with betting and emissions levies. Major VAT reforms are also planned, including eliminating the COVID-19 levy.

Forson announced changes to VAT regulations that will benefit households and small businesses. This includes reversing certain decouplings related to education and health funding.

Funding for Gold Board

Forson revealed a $279 million revolving fund for the Ghana Gold Board. This fund will help purchase and export at least 3 tonnes of gold weekly from small-scale miners. It aims to enhance foreign exchange generation and support cedi stability.

Reviewing Energy Sector Levies

The government plans to consolidate various energy sector levies into one. This includes merging existing levies into a single charge for better management of energy sector shortfalls.

Labour Export Programme

The government intends to formalize labor exportation for Ghanaians seeking jobs abroad. This initiative aims to reduce illegal migration and worker exploitation while maximizing remittances.

Uncapping Critical Funds

Forson announced that key development funds will be uncapped in 2025. These include GETFund, Road Fund, and NHIL, ensuring full allocations for critical projects.

Increased Funding for Free SHS

To address funding challenges in education, Forson mentioned an increase in funding for Free Senior High School (SHS). The budget allocates GH¢3.5 billion but expects an additional GH¢4.1 billion through uncapping GETFund.

Support for Tertiary Students

GH¢499.8 million has been allocated under the ‘No-Fees-Stress’ initiative for first-year students in public tertiary institutions. Uncapping GETFund will also support free tertiary education for Persons with Disabilities.

Allocations for Disaster Relief

Forson confirmed allocations totaling GH¢242.5 million for victims of the Akosombo dam spillage. Additionally, GH¢200 million is set aside for those affected by tidal wave flooding in Ketu South district.