Cutting expenditure by GHS10 billion was very huge – Economist tells Finance Minister

The 2025 budget focuses on fiscal consolidation, cutting expenditure by GHS 10 billion, which economist Dr. Adu Owusu Sarkodie considers substantial but necessary.

He also urged the government to retain the COVID-19 Levy to finance health infrastructure. Despite plans to abolish it, the finance minister acknowledged concerns over the 22% VAT rate.

The budget fulfills campaign promises like the Women’s Development Bank (WDB), with GH¢51.3 million allocated to support women entrepreneurs. Other social programs include GH¢292.4 million for free sanitary pads and a 30.8% increase in LEAP benefits, raising household beneficiaries to 400,000.

Finance Minister Dr. Ato Forson emphasized unity in tackling economic challenges, highlighting President Mahama’s fiscal discipline measures, such as reducing ministers from 123 to 60 and banning first-class travel for officials.