Use of refund account to offset revenue shortfalls in 2025 budget innovative, Says Dr. Priscilla Twumasi

Dr. Priscilla Twumasi, an economist at the University of Ghana, describes Ghana’s 2025 budget as fiscally conservative, aligning with the ongoing IMF program.

She commends the use of the tax refund account to offset revenue shortfalls from the removal of the E-Levy but stresses the need for a long-term revenue model, suggesting a digital transaction tax on online businesses.

She questions the ambitious inflation target of 11.9%, given the current 23%, and criticizes inadequate agricultural investment. Expressing concern over the discontinuation of some One District, One Factory (1D1F) projects, she urges support for viable factories and calls for consistency in industrial policy.

While acknowledging the budget’s fiscal discipline, she emphasizes the need for sustainable revenue strategies, stronger agricultural investment, and long-term industrial growth policies.