The Minister of Finance, Dr. Cassiel Ato Forson, presented the government’s fiscal policy to Parliament on Tuesday, March 11, 2025, outlining measures aimed at restoring the economy.

As part of these efforts, he announced the cancellation of several taxes, including the Betting Tax, COVID-19 Levy, and E-Levy, among others.

Among other things, the government stated its commitment to implementing the 24-hour economy policy.

Read the full 2025 Budget Statement below:

2025 BUDGET SPEECH PRESENTED BY DR. CASSIEL ATO FORSON, MP MINISTER FOR FINANCE

Ministry of Finance

11th March, 2025

BUDGET SPEECH 

SECTION ONE: INTRODUCTION 

1. Right Honourable Speaker, on the authority of His  Excellency the President, John Dramani Mahama and  pursuant to Articles 179 and 180 of the 1992  Constitution of the Republic of Ghana, and sections 21  and 23 of the Public Financial Management Act, 2016  (Act 921), I respectfully present to this august House  the Budget Statement and Economic Policy of Government for the 2025 Financial Year.
2. Today marks a moment of great significance and I have  the singular honour to stand before this House to  present, on behalf of His Excellency President John  Dramani Mahama, following his extraordinary  mandate, the maiden budget of his new  administration.
3. I am deeply grateful to His Excellency the President for  entrusting me with this responsibility.
4. Mr. Speaker, I beg to move that this House approves  the Financial Policy of Government for the year ending  31st December 2025.
5. Respectfully, I also submit to this august House the  following statutory reports as required by law:

i the 2024 Annual Report on the Petroleum  Funds, in line with Section 48 of the Petroleum  Revenue Management Act, 2011 (Act 815), as  amended;

ii the 2024 Energy Sector Levies Report, in  accordance with Section 6 of the Energy Sector  Levies Act, 2015 (Act 899); and

iii the 2024 Annual Report on collection and  utilisation of African Import Union Levy in line  with Section 7 of the African Union Import Levy  Act, 2017 (Act 952).

6. Mr. Speaker, with this Budget, I will also be seeking a  review of the following Acts to support the policies of  government aimed at stabilizing the economy and  promoting inclusive growth:

i Petroleum Revenue Management Act, 2011  (Act 815);

ii Ghana Infrastructure Investment Fund Act,  2014, (Act 877);

iii Minerals Income Investment Fund Act, 2018  (Act 978);

iv Energy Sector Levies Act, 2015, (Act 899);

v Ghana Cocoa Board Act, 1984, PNDCL 81 (and  its amendment);

vi Earmark Funds Capping and Realignment Act,  2017 (Act 947);

vii Public Procurement Authority Act, 2003 (Act  663) as amended with Act 914;

viii Ghana Education Trust Fund (GETFund) Act,  2000 (Act 581);

ix Fiscal Responsibility Act, 2018 (Act 982) and  incorporate into a comprehensive Public  Financial Management Act; and

x Revenue Administration Act, 2016 (Act 915).

7. Mr. Speaker, we remain committed to the pursuit of  our 24-Hour Economy policy aimed at stimulating  economic growth and job creation. This policy will  contribute to addressing Ghana’s structural economic  challenges by creating an integrated, efficient and  increasingly export-driven industrial economy that  fully utilises our national resources, capital and labour  power.
8. We will be presenting the 24-Hour Economy policy to  Parliament in due course. In this respect, the Labour  Act, the Ghana Investment Promotion Centre Act and  other enabling legislations will be reviewed.
9. Mr. Speaker, as part of efforts to stabilise the Cedi  through foreign exchange and gold reserve  accumulation, I will also submit a Bill to provide a legal  framework for the establishment of the Ghana Gold  Board for the consideration of this Honourable House.
10. Mr. Speaker, this Budget Speech is an abridged version  of the 2025 Budget Statement and Economic Policy of  Government.
11. I respectfully request the Hansard Department to  capture the entire Budget Statement and Economic  Policy of Government for the year ending 31^st December 2025.
12. Mr. Speaker, standing here evokes a sense of nostalgia  as I reflect on my journey in public service. From my  early days as a young parliamentarian in 2009, destiny  has guided my path—from a backbencher and a  member of the Finance Committee, to Deputy Minister for Finance, to Ranking Member of the Finance  Committee, to Minority Leader,to Majority Leader and  now, Minister responsible for Finance.
13. The invaluable experience I gained in this chamber has  shaped my perspective, sharpened my focus, and  prepared me for the task at hand. I fully commit to  supporting the President to fix the economy.
14. I take this opportunity to extend my profound  gratitude to the people of Ajumako Enyan Essiam, and  to Mr. Speaker and members of this House, for your unwavering support throughout the years.
15. Mr. Speaker, this esteemed House is a sanctuary of  rigorous debate, principled cooperation, and at times,  constructive disagreement—all in the pursuit of the  greater good of our beloved country.
16. I look forward to working with you, the Right  Honourable Speaker, and my colleagues on both sides  of the aisle, to reset Ghana’s economy through sound  policy and structural reforms that will propel our  nation forward.
17. Mr. Speaker, there comes a time in a nation’s history  when fundamental challenges must be confronted,  difficult choices must be made, and a new course must  be set for the future.
18. For Ghana, that defining moment is now!  19. President John Dramani Mahama made a commitment to reset Ghana for jobs, accountability and prosperity  for all, as captured in the NDC Manifesto. In this regard,  the theme for this budget is “Resetting the Economy  for the Ghana we Want”. 
19. Mr. Speaker, the democratic ideals we tirelessly fought for, are being hailed. Our democracy has been  consolidated with yet another peaceful transition of  power.
20. That notwithstanding, our youth face an uncertain  future with growing unemployment and hopelessness.  This suggests that the dividends of democracy, such as economic prosperity and social justice, remain elusive.
21. Mr. Speaker, the choices before us are clear: we can  either continue on a path of self-destruction by not confronting the problems or we can embark on a  journey of fundamental reforms and transformation— one that resets our economic model, redefines our  priorities, honours our social contract and provides opportunities for all.
22. Mr. Speaker, President Mahama has chosen the path  of reforms and transformation. He will fix the  economy. He will restore hope. And lead us to build the  Ghana we want together.
23. This budget was preceded by the National Economic  Dialogue on the theme “Resetting Ghana – Building the  Economy We Want Together” on 3^rd and 4^th March,  2025. Through this consensus-building dialogue, the  people demanded decisive action and real solutions to  the severe challenges that plaque us.
24. Mr. Speaker, the 2025 budget is the culmination of the  true aspirations, felt needs and genuine desires of the  people of Ghana, expressed through engagements  with diverse stakeholders.
25. As part of our broad consultations ahead of the  budget, we recently engaged traders at major trading  centers, including the Makola Market, to listen to their  concerns, gauge their expectations and elicit their  inputs.
26. Mr. Speaker, the extensive consultationsrevealed that the overriding concern among Ghanaian traders and  the business community, remains price and exchange  rate instability.
27. Apart from eroding their working capital, exchange  rate volatilities make effective business planning impossible and increase the cost of doing business.
28. This budget outlines far-reaching measures which will  be implemented in close collaboration with the Bank of Ghana, to effectively and efficiently manage the  exchange rate and inflation.
29. Mr. Speaker, we also engaged the youth of Ghana in a  dialogue on new media as part of our pre-budget  consultations.
30. Mr. Speaker, during my engagement with the youth it  was revealed that 321 pharmacists who were  employed since June 2023 have not received their  salaries. We will take urgent steps to remedy this  situation.
31. This conversation was an eye-opening experience – one that strengthened my belief that the voices of the  youth matter in designing policies that directly or  indirectly impact their lives and future.
32. Mr. Speaker, in 2016, I came to this Chamber, on behalf  of the then Minister for Finance, Honourable Seth  Terkper, and led the passage of the Public Financial  Management Act (2016) Act 921 to deploy a robust  Public Financial Management (PFM) System.
33. Even though Ghana’s Public Financial Management Act  remains one of the best in the world, its poor  implementation has rendered our Public Financial  Management system weak, allowing for abuse and  costly infractions.
34. Mr. Speaker, President Mahama’s Government is  committed to the full implementation of this critical  legislation.
35. Accordingly, we will enforce the sanctions regime, link  contracting and public procurement to budgetary  provisions in the Medium-Term Expenditure  Framework and seek parliamentary approval for all  multi-year commitments as required by law.
36. We will comply with procurement processes and link  them to approved Budgets. We will also respect the  limits of the appropriation approved by this august  House.
37. We will rationalise the management of compensation of employees, including conducting headcounts.
38. Mr. Speaker, I now turn my attention to:  i the state of the Ghanaian economy in 2024;

ii macroeconomic policies, targets, and measures  for 2025 and the medium-term;

iii policy initiatives and budget allocations; and iv sectoral performance and outlook.

SECTION TWO: THE STATE OF THE GHANAIAN  ECONOMY IN 2024 

40. Mr. Speaker, at this point let me now focus on the  state Ghanaian economy.
41. Mr. Speaker, we inherited an economy in deep crisis,  hard hit with debt and beset by other fiscal  challenges such as large accumulation of MDA  arrears/payables, energy sector financing shortfalls,  and large fiscal risks from the cocoa and financial  sectors.
42. Weak commitment control systems and reckless  public spending have reversed the progress made in  fiscal consolidation even under the IMF-supported  Programme which commenced in 2023.

Status of IMF-supported Programme 

43. Mr. Speaker, notwithstanding the gains made under the IMF-supported Programme, that was achieved  through the painful sacrifice of domestic  bondholders, external creditors and taxpayers, the  economy remains in distress.
44. Mr. Speaker, key performance indicators to be  assessed by the IMF staff in the upcoming 4^th review  of the Programme scheduled for April 2025 such as  the primary balance (commitment), inflation, and  social protection spending for end-December 2024,  are likely missed.
45. In addition, all structural benchmarks due by end December 2024 are likely missed.
46. Mr. Speaker, inflation worsened in 2024 from 23.2%  in 2023 to 23.8% in 2024.
47. The 2024 end-period inflation also exceeded the  budget target of 15% by 8.8 percentage points and  the IMF central target of 18% by 5.8 percentage  points. This has triggered a discussion with the IMF  under the Monetary Policy Consultation Clause.
48. Mr. Speaker, the primary balance on commitment basis worsened from a deficit of 0.2% of GDP in 2023  to a deficit of 3.9% in 2024.
49. Mr. Speaker, the primary balance on commitment basis target for 2024 was a surplus of 0.5% of GDP.  Sadly, the previous government recorded a deficit of  3.9% of GDP. This represents a slippage of a  whopping 4.4 percentage points.

Update on Arrears/Payable Accumulation  

50. Mr. Speaker, at the end of December 2024, total  central government arrears/payables amounted to  GH¢67.5 billion, representing 5.2% of GDP. with the  road sector alone accounting for GH¢21 billion.
51. Mr. Speaker, when I assumed office on 23^rd January  2025, my office was inundated with requests for  payment from many government contractors and  suppliers.
52. To ascertain the total arrears/payables (outstanding  claims) for all MDAs, the Ministry of Finance formally  requested the MDAs on 28^th January 2025 to submit  information on all arrears/payables (outstanding  claims) as at end-2024.
53. Subsequent to this, the Ministry of Finance held  special hearings with the MDAs to validate the  arrears/payables submitted.
54. The responses from the MDAs and the validation  revealed that a staggering amount of GH¢67.5 billion  is owed to government contractors and suppliers.
55. This consists of MDA outstanding Interim Payment  Certificates and invoices of GH¢49.2 billion and  outstanding Bank Transfer Advice of GH¢18.3 billion at the Controller and Accountant-General’s  Department.
56. Mr. Speaker, this total central government  arrears/payables excludes the following:

i US$1.73 billion owed to Independent Power  Producers (IPPs);

ii GH¢68 billion owed by the Electricity Company  of Ghana (ECG);

iii GH¢32 billion owed by the Ghana Cocoa Board  (COCOBOD); and

iv GH¢5.75 billion owed by Road Fund.

57. Mr. Speaker, the Bank of Ghana is also asking for a  bailout of about GH¢53 billion to address their  negative equity position.
58. Mr. Speaker, as part of measures to address these  mounting accumulated arrears/payables, we have  commissioned an audit of these arrears/payables and guarantee value for money before payment.
59. Mr. Speaker, in addition to the GH¢67.5 billion in  arrears/payables, the validation process also  revealed that MDAs have committed government  through contract awards in excess of GH¢194 billion, about 16.5% of GDP as at end-2024, with the road  sector alone accounting for over GH¢100 billion.
60. Mr. Speaker, most of these contracts were awarded without commencement certificates and  authorization, and without budgetary provision, a  blatant violation of the Public Financial Management  Act, 2016 (Act 921).

Update on Debt Service Obligations 

61. Mr. Speaker, apart from the huge arrears and  commitments, our fiscal situation is further  complicated by huge bullet debt service and  constrained financing options.
62. Currently, the Government’s options to financing the  budget is limited to only the treasury bill market following the debt restructuring programme.
63. Moreover, the forthcoming debt service of both  Domestic and Eurobond debt obligations will have profound implications for fiscal sustainability and  balance of payments.
64. Mr. Speaker, the Domestic Debt Exchange  Programme has resulted in huge domestic debt service payments. 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  obligation alone, of which 73.3% due in 2027  (GH¢57.6 billion) and 2028 (GH¢52.5 billion).
65. The debt service obligations of 2027 and 2028 are  major humps. These humps are cancerous and pose  significant risk to the economy but we shall fix it!
66. Our debt service obligation for this financial year is  equally burdensome with significant humps in  February (GH¢9.9 billion), July (GH¢6.2 billion) and  August (GH¢10.1 billion).
67. Mr. Speaker, the fiscal challenges are further  compounded by the significant short-term treasury  bill maturities that we have inherited.
68. These obligations, totaling about GH¢111.1 billion,  require rollover on a weekly basis, placing additional  pressure on cash flow and liquidity requirements.
69. Mr. Speaker, beyond domestic maturities, Ghana  faces significant external debt service obligations over the next four years totaling US$8.7 billion,  representing 10.9% of GDP., with heavy  concentration in 2027 and 2028.
70. Again, 55% of the total external debt service of  US$8.7 billion is due to be serviced in 2027 (US$2.5  billion) and 2028 (US$2.4 billion).
71. It seems the debt restructuring undertaken by the  previous administration was designed to be  2027/2028-heavy.
72. Mr. Speaker, in spite of all these upcoming domestic  and external debt service obligations, no buffers were built to cushion these unprecedented debt  service burdens.
73. Mr. Speaker, as at 7^th January 2025, the debt service  reserve dollar account (Sinking Fund) had a balance  of about US$64,000 against US$319 million in 2016 and the debt service reserve Cedi account had  GH¢143 million against GH¢430 million in 2016.

Stalled Projects under Bilateral Loans  

74. Mr. Speaker, due to the bilateral creditor debt  restructuring undertaken by the previous  administration, a staggering number of 55 projects  have come to a halt.
75. This leaves a massive amount of about US$3 billion in  undisbursed loans and about US$300 million in  outstanding interim payment certificates (IPCs).
76. Some of these projects are Effia Nkwanta Regional  Hospital, Kejetia Market Phase 2, Bolgatanga-Bawku Pulimakom road project and Tema-Aflao road  project.
77. Delayed payments and demobilization from site  could result in cost over-runs of about US$1.1 billion.
78. Mr. Speaker, the IMF-supported Programme imposes  an annual disbursement ceiling of US$250 million for  official bilateral loans. This constraint means that it  will take a minimum of 12 years from the recommencement of disbursements to complete these  55 stalled projects.
79. We will be engaging, in the coming days, to resolve  this.

Energy Sector Fiscal Risks 

80. Mr. Speaker, the increasing energy sector financing  shortfalls is posing significant fiscal risks to the  country’s finances.
81. In 2024, the MoF supported the energy sector with  payments of about GH¢20.8 billion. These resources  could have been used for job creation and other  development programmes like roads, schools, and  hospitals if the sector inefficiencies were resolved.
82. Mr. Speaker, a recent exercise conducted by the  energy sector financing modelling team under the  Energy Sector Recovery Programme (ESRP) revealed that the Business as Usual (BAU) energy sector  financing shortfall has increased significantly to about GH¢35 billion for 2025, even after the rather  large spending for the sector’s shortfall in 2024.
83. Mr. Speaker, more importantly, the shortfall for the  period 2023-2026 has been estimated at about GH¢140 billion. This is over 20 times more than the  allocation for Goods and Services for all MDAs for  2025.
84. Mr. Speaker, in addition to the energy sector shortfall  which relates to current invoices, there are large  unpaid legacy arrears due the Independent Power  Producers (IPPs). The legacy arrears which stood at  US$1.73 billion at the end of 2024.

Cocoa Sector Fiscal Risks 

85. Mr. Speaker, the cocoa sector which has long been  the backbone of the Ghanaian economy is sadly on  its knees owing to gross mismanagement in the last  few years and is now unable to support the economy  as it should despite record-high world market prices.
86. The sector faces declining output and financing  challenges characterized by unsustainable debt, roll over contracts and quasi-fiscal expenditures  including cocoa roads, a non-core function.
87. Mr. Speaker, cocoa production has dropped by nearly  50% over the past three years. In the 2023/2024 crop  season, COCOBOD was unable to supply 330,000  tonnes of cocoa to meet its full contractual  obligation. This under-supply has been rolled over for  subsequent supply by the new administration.
88. Mr. Speaker, these 2023/24 forward sales contracts  locked-in at lower prices than current market rates, have resulted in revenue losses of US$840 million for  both COCOBOD and impoverished the Ghanaian  farmer.
89. Mr. Speaker, the rolled-over contracts will result in  additional losses of US$495 million this year. This  implies that for every tonne of cocoa delivered this year in fulfilment of the rolled-over contracts,  COCOBOD and the Ghanaian farmer will lose  US$4,000 in revenue.
90. There are also risks in relation to market price  differentials and smuggling. The large gap between  market prices and farmer payments encourages smuggling and threatens long-term sustainability of  the industry.
91. Mr. Speaker, COCOBOD’s outstanding debt amounts  to GH¢32 billion, of which GH¢11.92 billion is due to  be paid in 2025.
92. Outstanding cocoa road contracts reached GH¢21  billion (US$1.3 billion) in 2024, of which only GH¢4.4  billion has been accounted for in COCOBOD financial  statements.

Financial Sector Risks  

93. Mr. Speaker, the financial sector still struggles even  after spending GH¢30.3 billion in the financial sector  clean-up exercise by the end of 2024. This includes  GH¢26.9 billion spending for the banks, Savings &  Loans companies, Financial Houses, Micro-Finance  Institutions, and Asset Management companies.
94. Mr. Speaker, the sector requires GH¢10.45 billion to  address the remaining financial sector legacy issues  and emerging risks.
95. In addition, an amount of GH¢2.2 billion is required  to fully capitalise NIB and ADB.

2024 Fiscal Performance  

96. Mr. Speaker, I will now update the House on fiscal  performance for the 2024 financial year.
97. Mr. Speaker, the fiscal performance in 2024 was  characterized by improved revenue collection but  with significant expenditure overruns. In addition, large arrears/payables were accumulated.
98. In summary, Mr. Speaker, provisional data show that:

i the primary balance on commitment basis, the  key fiscal anchor, worsened from a deficit of 0.2%  of GDP at the end of 2023 to a deficit of 3.9% of  GDP at the end of 2024, that is 4.4 percentage  points worse than the target surplus of 0.5% of  GDP;

ii on cash basis, the primary balance was a deficit of  1.2% of GDP against a target deficit of 0.6%;

iii the overall fiscal balance on commitment basis for 2024 was a deficit of 7.9% of GDP against a  target deficit of 4.2% whilst the Overall Fiscal  Balance on cash basis was a deficit of 5.2% of GDP  against a target of 5.3%;

iv total revenue and grants amounted to GH¢186.6  billion or 15.9% of GDP, 5.3 percent above the  revised target of GH¢177.2 billion or 17.4% of GDP.  The performance was mainly driven by the higher than-programmed Oil and Gasreceipts and higher  non-oil tax revenue;

v total expenditure on commitment basis, including discrepancy amounted to GH¢279.2 billion or  23.7% of GDP. This is 27.1 percent above the  budgetary provision of GH¢219.7 billion or 21.5%  of GDP;

vi Primary Expenditure on commitment basis, including discrepancy amounted to GH¢232.4  billion or 19.8% of GDP. This is 35.3 percent  above the target of GH¢171.7 billion or 16.8  percent of GDP;

vii all expenditure lines exceeded their respective  targets for the period except for Interest  Payments, Goods and Services and Other  Expenditure; and

viii the discrepancy for 2024, being unclassified  expenditure, was GH¢3.8 billion as compared to  a discrepancy of GH¢12.9 billion in 2023.

Public Debt Stock  

99. Mr. Speaker, as at end December 2024, provisional  data indicate that gross central government and  guaranteed debt was GH¢726. 7 billion from  GH¢610.0 billion in 2023. This represents 61.8 percent of GDP in 2024 compared to 68.7 percent of  GDP in 2023.
100. Mr. Speaker, the reduction in debt-to-GDP ratio and  the dollar component of our debt stock is as a result  of the 37% haircut on the principal of the Eurobond  debt under the debt restructuring programme.

Ghana’s Debt Restructuring Update 

101. Mr. Speaker, you may recall that the government  commenced the debt restructuring programme in  2022 to restore debt sustainability and economic  stability.
102. Mr. Speaker, as of now, the restructuring process is  approximately 93 percent completed. The remaining  7 percent relates to debt of US$2.7 billion owed to  commercial creditors.
103. We are committed to completing the remaining debt  restructuring as soon as possible.

Real Sector Developments in 2024 

104. Mr. Speaker, provisional 2024 GDP statistics  published by the Ghana Statistical Service (GSS) on  10^th March 2025 shows that overall real GDP grew by  5.7 percent in 2024, compared to the growth rate of  3.1 percent recorded over the same period 2023. The  key driver of this growth was largely mining and  quarrying, mainly gold, which recorded a growth of  19.1%.
105. Mr. Speaker, non-oil GDP grew by 6.0 percent in  2024, compared with a growth rate of 3.6 percent  recorded in 2023.

External Sector Developments  

106. Mr. Speaker, Gross International Reserves (GIR)  increased to a stock position of US$8.98 billion at the  end of 2024 and was enough to cover 4 months of  imports, exceeding the target floor of 3 months of  imports cover.
107. By the end of 2024, the currency had depreciated by  19.2 percent, 17.8 percent and 13.7 percent against  the US dollar, British Pound and Euro respectively.

SECTION THREE: 2025 AND MEDIUM-TERM POLICY  OBJECTIVES AND TARGETS  

108. Mr. Speaker, it is what it is. The state of our economy  is troubling, but we will fix it! It will require some  sacrifices, truthfulness, transparency and discipline.
109. We will take strong measures to confront the  situation head-on.
110. Mr. Speaker, the sacrifice must come from all  stakeholders, beginning with the government.
111. His Excellency President Mahama appreciates this  and has led the charge by significantly downsizing his  government. From the elephant 88 to 60 ministers.
112. He has also reduced the number of government  ministries from 30 to 23.
113. Mr. Speaker, as part of its contribution to the  resetting agenda, organised labour has followed suit  by working with government and employers’  association to agree on a modest increase in base pay  and minimum wage for 2025.
114. On behalf of His Excellency the President, I would like  to express our profound gratitude to organised  labour and employers.
115. Mr. Speaker, ordinary Ghanaians have also sacrificed  by enduring the negative impact of severe currency  depreciation, hyperinflation, high food inflation,  principal and interest haircuts, soaring interest rates,  among others.
116. Mr. Speaker, it is now time for the peoples’  representatives, the Parliament of Ghana and the  judiciary to follow suit.
117. I would also like to call on all other stakeholders,  including the business community, faith-based  organisations, academia and civil society to support  this national call.
118. Mr. Speaker, our immediate task is to reset our  nation to restore good governance, reduce the  excruciating suffering of our people and set our  country on a trajectory of economic transformation.
119. Mr. Speaker, our vision is to build a prosperous and a  democratic state anchored on the principles of  freedom and justice, providing equal opportunities  for all. Through this vision, we will work together to  build the Ghana we all want.
120. Mr. Speaker, the resetting agenda will be anchored  on:

i restoring hope in our democracy, renewing  trust in public officials, and helping every  Ghanaian attain their full potential;

ii offering a trusted hand to the vulnerable,  particularly women and youth and creating a  new Ghana for coming generations; and

iii stimulating demand by patronising made-in Ghana goods under the 24-hour Economy  Policy.

121. Mr. Speaker, I would like to first present the  government’s immediate and strong measures to  address the current challenges we are confronted  with, followed by the medium-term vision, policy  objectives and targets.

Fiscal Policy Objectives 

122. Mr. Speaker, consistent with Section 14 of the Public  Financial Management Act, 2016 (Act 921), the fiscal  policy objectives of this government is to support the  economic transformation agenda to ensure the macroeconomic stability of the country within the  macroeconomic and fiscal framework.
123. More specifically, the fiscal policy objectives of  government include:

i rationalising government expenditure and  eliminating wasteful expenditure;

ii optimising domestic revenue mobilisation  through the broadening of the tax base,  increased non-tax revenue collection, adopting  enhanced tax compliance measures, and  modernisation of tax administration through  digital technology;

iii increasing the share of domestic capital  expenditure to spur economic growth and job  creation;

iv reducing public debt to sustainable levels and  adopting prudent debt management practices  to support debt sustainability;

v reducing the fiscal deficit progressively in  accordance with an amended Fiscal  Responsibility Act to promote fiscal and debt  sustainability; and

vi restoring confidence in Ghana’s economy.

124. Mr. Speaker, our approach will be to foster economic  growth, accelerate job creation, reduce inflation and  stabilize the cedi.
125. To achieve this, it is crucial that we establish  macroeconomic stability and ensure debt  sustainability.
126. Mr. Speaker, we are confident that by prioritizing  these foundational elements, we can cultivate an  environment where individuals can prosper and  businesses can thrive in Ghana.
127. Mr. Speaker, Ghanaians, through the recent National  Economic Dialogue, have expressed a clear desire for  the fiscal deficit and public debt to be reduced  through cuts in government spending rather than  through only tax measures. We wholeheartedly  agree!
128. Mr. Speaker, going forward, we will tailor our  expenditures to align with our fiscal realities. After  all, “whoever pays off their debt gets rich”.
129. Mr. Speaker, we are poised to implement a three pronged approach to achieve our objectives,  beginning with this budget:

i Recalibrate the fiscal adjustment. We believe  that prioritizing a spending-led fiscal  adjustment can initiate a positive cycle. Firstly,  it will help lower inflation and curb the  depreciation of the cedi. Secondly, it will  lessen government’s reliance on borrowing,  which in turn will reduce the crowding out of  the private sector and lower interest rates.  Lastly, this approach will ease the strain on  monetary policy, allowing the Bank of Ghana  greater flexibility to reduce monetary policy  rates, ultimately resulting in lower bank  lending rates;

ii Deliver a shock therapy. We are implementing  a form of “shock therapy” to the economy by  making significant spending cuts this year,  thereby reducing the government’s financing  needs and frontloading fiscal adjustment. This  is the downpayment for our policy credibility  and creditworthiness;

iii Restore fiscal responsibility. Moving forward,  we will enhance public financial management by: i) Empowering ministers to effectively  manage their budgets; ii) Ensuring strict  compliance with the commencement  certificate system; iii) Passing and enforcing  the revised Fiscal Responsibility Act; and iv)  Enforcing sanctions for non-compliance.

2025 Macroeconomic Targets  

130. Mr. Speaker, in pursuit of the overarching  macroeconomic objectives, the following  macroeconomic targets have been set for the 2025  fiscal year:

i Overall Real GDP growth of at least 4.0 percent;

ii Non-Oil Real GDP growth of at least 4.8 percent;

iii End-Period inflation rate of 11.9 percent;

iv Primary Balance on Commitment basis at a  surplus of 1.5 percent of GDP; and

v Gross International Reserves (including oil  funds and encumbered/pledged assets) to  cover not less than 3 months of imports.

Addressing Inflation and Exchange Rate Pressures 

131. Mr. Speaker, government will implement a number  of measures to complement Bank of Ghana’s  monetary and exchange rate policies to stabilize  inflation and the exchange rate.
132. Mr. Speaker, the measures to stabilize the exchange  rate include the following:

i the establishment of the GoldBod to enhance  the generation and accumulation forex to support the stability of the cedi;

ii the BoG will continue to implement its FX  forward auctionsto support the stability of the  Cedi;

iii government’s strong fiscal consolidation  through the reduction in public sector  spending and the fiscal deficit will reduce pressures on the exchange rate; and

iv our import substitution drive under the 24- Hour economy involving the domestic  production of key products originally imported  will reduce imports and related FX  requirement, boding well for FX stability.

133. Mr. Speaker, we are addressing the inflation problem  through a number of measures including the  following:

i specific intervention including the Agriculture  for Economic Transformation Agenda is  expected to increase food production and reduce food inflation.

ii government will implement policiesthat target  items with large weights in the CPI basket such  as transportation and utilities to reduce their  prices;

iii our aggressive fiscal consolidation drive aimed  at reducing the fiscal deficit and borrowing, will  contribute significantly to reducing inflationary  pressures;

iv our strategy to Improve exchange rate stability  will reduce imported inflation and fuel prices;  and

v the BoG will maintain an appropriate monetary  policy stance and use its liquidity management  interventions to support the disinflation  process.

2025 Fiscal Measures 

134. Mr. Speaker, to achieve our expenditure-led fiscal  consolidation objectives, we will implement a  number of fiscal measures.

2025 Expenditure Measures  

135. Mr. Speaker, the following expenditure measures will  be implemented in the 2025 fiscal year and the  medium-term to support the fiscal consolidation  agenda:

i conduct a comprehensive audit to validate the  quantum of arrears/payables and  commitments as at 31st December 2024 before payment;

ii the mandatory use of the “Blanket Purchase  Order” to capture multi-year  commitments/contracts in line with Medium Term Expenditure Framework ceilings;

iii amend the Public Procurement Act to provide  for an Independent Value-for-Money Office to  scrutinize government procurements above a  threshold to be determined by Parliament;

iv amend the Public Procurement Act to make  commencement certificates and budgetary  provisions prerequisites for all procurements  to be paid by central government;

v fully integrate GHANEPS with GIFMIS to  ensure that only MDAs’ projects and purchase  orders that have approved budgets and  allotments can obtain procurement approvals;

vi operationalise the Compliance Desk at the  Ministry of Finance to monitor reports on  commitments and arrears accumulation to  enable them, among others, publish a PFM  league table for compliance;

vii strictly enforce sanctions under sections 96 to  98 of PFM Act for breaches of the PFM Act,  especially those that relate to arrears  accumulation and commitment control;

viii cut wasteful expenditures on inefficient and  duplicative programmes to reduce  expenditure under the fiscal consolidation  programme. In this regard, selected  expenditure items including the GhanaCARES,  the YouStart and the One District One Factory  will be eliminated;

ix reassign the functions of the Development  Authorities (CODA, NDA, and MBDA) to the  District Assemblies;

x amend the Petroleum Revenue Management  Act, 2011 (Act 815) (PRMA) to allocate all ABFA resources for infrastructure projects;

xi National Health Insurance Levy (NHIL) will  receive full allocation under the Earmarked  Funds Capping and Realignment Act, 2017 (Act  947);

xii the Road Fund will receive full allocation under  the Earmarked Funds Capping and  Realignment Act, 2017 (Act 947);

xiii reduce the GNPC’s share of net Carried &  Participating Interest (CAPI) from 30% to 15%  and fully restore transfers to GNPC under the  Earmarked Funds Capping and Realignment  Act, 2017 (Act 947);

xiv amend the Mineral Income and Investment  Fund (MIIF) Act to ensure the 80% Mineral  Royalties originally maintained by MIIF is  transferred to the Consolidated Fund for  infrastructure development; and

xv strengthen social protection through the  implementation of new social intervention  programmes including the No-Academic-Fee  policy for all first-year students in public  tertiary institutions under the ‘No-Fees-Stress’  initiative, the Free Tertiary Education for  Persons with Disability (PWDs), Free Primary  Healthcare, the Ghana Medical Care Trust  (MahamaCares), and the Free Sanitary Pads  for schoolgirls.

2025 Energy Sector Measures 

136. Mr. Speaker, to address the energy sector challenges,  including reducing the quantum of the large energy  sector shortfalls, the following energy sector  recovery programme interventions will be  implemented:

i ECG and NEDCo will implement a number of measures including metering and the  implementation of a Private Sector  Participation (PSP) strategy to improve  collection efficiency;

ii implement the Liquid Fuel-to-Gas Swap through an increase in N-Gas supply from the  60 mmsc per day to 100 mmsc to take  advantage of cheaper gas prices; and

iii complete the IPP capacity renegotiations to  generate some savings through negotiated  lower fixed capacity charges and variable  O&M charges.

137. Mr. Speaker, as agreed with the IMF by the previous  administration, we will implement the following ESRP  measures to achieve the Structural Benchmark of the  IMF programme:

i PURC will continue to implement the  Quarterly Tariff Adjustment to reflect changes  in inflation, exchange rate, and generation  mix;

ii PURC will also undertake the major tariff  adjustment which will be due in the 4th  quarter of 2025 to reflect capacity charges,  additional liquid fuel usage, and additional  capex;

iii the Weighted Average Cost of Gas will be  increased from the current $7.836 per mmbtu to  $8.45 to reflect the increased prices of natural  gas as well as the changes in the supply mix; and

iv the subsidy on Weighted Average Cost of Gas  the granted to some ceramic companies  through the Discounted Industrial  Development Tariff will be reversed.

2025 Revenue Measures  

138. Mr. Speaker, Government is proposing some revenue  measures to achieve the 2025 fiscal targets for the  consideration and approval of Parliament.
139. This is consistent with our commitment under the  IMF-supported programme to observe a non-oil tax  revenue effort of 0.6 percentage points annually as  part of measures to improve domestic revenue  mobilisation and achieve our debt sustainability  targets over the medium-term.
140. Mr. Speaker, despite our commitment to increase  the non-oil tax revenue by 0.6 percentage points of  GDP, we have programmed the following nuisance  taxes for removal in line with our manifesto promise.
141. Mr. Speaker:

i we will abolish the 10% withholding tax on  winnings from lottery, otherwise known as the  “Betting Tax”;

ii we will abolish the Electronic Transfer Levy (E Levy) of 1%;

iii we will abolish the Emission Levy on industries  and vehicles;

iv we will abolish the VAT on motor vehicle  insurance policy; and

v we will abolish the 1.5% withholding tax on  winning of unprocessed gold by small-scale  miners.

142. Mr. Speaker, the removal of these taxes will ease the  burden on households and improve their disposable  incomes. In addition, it will support business growth  and improve tax compliance.
143. Mr. Speaker, the Tax Refund Account has been  abused in recent years. A study on the use of the tax  refunds in the last eight (8) years revealed that  GHS29.11 billion had accrued to the tax refund  account with only 12.5 billion, representing 43% of the total accrued amount is used for tax refund  purposes.
144. The study also revealed that GHS16.6 billion,  representing 57% of the total amount accumulated in  the tax refund account was misapplied, which is a total violation of the Revenue Administration Act,  2016 (Act 915) and the Public Financial Management  Act, 2016 (Act 921).
145. Instructively, there were virtually no tax refund  arrears over the period.
146. Therefore, we are reducing the current tax refund  ceiling by 2 percentage points from 6% to 4% of Total  Revenue as defined in Section 69 of the Revenue  Administration Act, 2016 (Act 915).
147. Mr. Speaker, by reducing the ceiling on the tax refund  from 6% to 4%, we will save GH¢3.8 billion. This  amount is enough to close the revenue shortfall from  the removal of the E-Levy amounting GH¢1.9 billion  and the Betty Tax of GH¢180 million.
148. Mr. Speaker, already we have saved GH¢3.8 billion  for 2025 alone from only one source and this is  enough to close the gap from the taxes that we have  removed.
149. Mr. Speaker, to address the concerns from well meaning Ghanaians on how we are going to close the  revenue shortfall as a result of the removal of  selected taxes, the answer is we have stopped the  bleeding.
150. Accompanied with this budget, we will amend the  Revenue Administration Act, 2016 (Act 915). This  measure will improve the tax revenue, net of tax  refunds by 2%, representing 0.3% Of GDP.
151. Mr. Speaker, in line with Government policy, the  2025 minimum wage recently negotiated with the  National Tripartite Committee will be zero-rated. This  is consistent with our resolve to protect the poor and  the vulnerable.
152. Without increasing the levy, we will also review the  Energy Sector Levies Act (ESLA) to consolidate the  Energy Debt Recovery Levy, Energy Sector Recovery  Levy (Delta Fund), and Sanitation & Pollution Levy  into one levy and use the proceeds to cater for the  energy sector shortfalls and service the inherited  debt service obligation.
153. Mr. Speaker, the rest of the energy sector levies,  including, Road Fund Levy, Energy Fund Levy, Price  Stabilisation & Recovery Levy, Public Lighting Levy and National Electrification Levy will remain to  support the achievement of their intended  objectives.
154. Mr. Speaker, Ghana has not sufficiently capitalized on  the benefits of its extractive sector to generate  revenue to support development and diversification.  We have failed to leverage our natural wealth by  capturing its rent and channeling it towards  productive infrastructure and human capital.
155. Natural resource rent which is the difference  between the revenue of a commodity and the  average cost of producing it, is about 14% of GDP for  Ghana. However, revenue from the extractive  industry is around 1.5% of GDP only. This is because  we fail to fully capture the economic rent of our  natural resources.
156. Mr. Speaker, whereas global gold prices have seen  some significant increase in recent times, Ghana has  not been able to take full advantage of this  development.
157. Consequently, we are proposing to increase the  Growth & Sustainability Levy from 1% on the gross  production of mining companies to 3% to enable the  nation to have its fair share of the windfall from increase in gold prices. We also propose to extend  the sunset clause to 2028.
158. We will also propose to extend the sunset clause of  the Special Import Levy to 2028.
159. Mr. Speaker, Ghanaians and this Honourable House  will recall that road tolls on public roads were zero rated in 2022. Demand for construction and  improvement of road infrastructure continue to  increase even as substantial arrears and claims in the  road sector remain.
160. Mr. Speaker, while the annual average collections  from road tolls have not been significant compared  to its potential, the existing zero-rate policy for road  tolls has exacerbated the situation and dimmed any  prospects of raising enough revenue from tolls for  road construction and maintenance.
161. Accordingly, Government will work with  stakeholders, including the private sector, to roll out  a technology-driven solution to re-introduce road  tolls in 2025 as part of the Big Push Programme.
162. Mr. Speaker, Government will also strengthen the  legal and regulatory regime for Non-Tax Revenues  (NTR) and enforce the framework for improved  service delivery. This will be achieved through the introduction of an overarching NTR Legislation,  amendment of existing relevant laws and the  development of a National NTR Strategic  Policy/Framework.
163. As part of the reform efforts to improve other NTR  revenue streams, government will explore and  operationalize a regulatory framework for the  collection, management and reporting of property  rates consistent with the Medium-Term Revenue  Strategy (2024-2027) and the Local Government Act.
164. Mr. Speaker, the current compliance rate for SMEs  and personal income tax is below 30%, which is  extremely low. Government will embark on an  aggressive and sustained tax education campaign in  the next 2-3 years to ensure improved compliance  and tax revenue mobilization.
165. We will also institute quarterly dialogue on tax issues  among GRA, MoF and the business community to  ensure that issues affecting businesses are addressed  promptly.

VAT Reforms 

166. Mr. Speaker, we commit to the people of Ghana and  the business community that we will undertake  comprehensive Value Added Tax (VAT) reforms this  year with the aim to review the current distortions  and cascading structure of the VAT regime.
167. Ghana’s effective VAT rate is about 22 per cent. This  is because GETFund Levy of 2.5 per cent, National  Health Insurance Levy (NHIL) of 2.5 per cent and  COVID-19 Levy of 1 percent are all added to the base  for the final determination of the VAT rate of 15%.
168. Mr. Speaker, aside the high VAT rate, businesses are  not permitted by law to claim their input for the NHIL,  GETFund Levy and COVID-19 Levy, compounding the  burden on households.
169. Mr. Speaker, our VAT regime has been distorted and  rendered inefficient. It combines both VAT and sales  tax principles with a flat rate, standard rate and  levies.
170. We have requested Technical Assistance from the  Fiscal Affairs Department of IMF on VAT reforms. It is  expected that the IMF Mission will commence in April  2025. The recommendations from the Technical Assistance Mission are expected to inform our VAT  reforms.
171. Mr. Speaker, ahead of the IMF Technical Assistance Mission, I will inaugurate a VAT Reform Task Force to  hold broad consultation with key stakeholders for  their inputs.
172. Mr. Speaker, the parameters for the VAT reforms which will be completed this year will include:

i abolishing the COVID-19 Levy;

ii reversing the decoupling of GETFund and NHIL  from the VAT;

iii reducing the effective VAT rate for households  and busineses;

iv reversing the VAT flat rate regime;

v upwardly adjusting the VAT registration  threshold to exempt micro and small  businesses from the collection of VAT; and

vi improving compliance through public  education and awareness.

2025 Revenue Mobilisation and Resource Allocation 

173. Mr. Speaker, Total Revenue and Grants for 2025 is  projected at GH¢223.8 billion or 17.2% of GDP up  from GH¢186.5 billion or 17.4% of GDP. The  projection is underpinned by non-oil revenue  measures which are expected to yield at least 0.5  percent of GDP.
174. 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.
175. Primary Expenditure on a commitment basis  (expenditures net of interest payments)—is  projected at GH¢204.7 billion, representing 15.8% of  GDP in 2025, a significant decline from GH¢232.4,  representing 21.7% of GDP in 2024.
176. Mr. Speaker, based on the resource allocations for  the 2025 fiscal year, the total appropriation for the  year ending 31st December 2025 is  GH¢290,971,212,435.

2025 Budget Balances and Financing Operations  

177. Mr. Speaker, based on the estimates for total  revenue & grants and total expenditure (commitment), the projected overall balance on  commitment basis is a deficit of GH¢43.8 billion,  equivalent to 3.1 percent of GDP. The corresponding  Primary balance on commitment basis is a surplus of  GH¢ 20.3 billion, equivalent to 1.5 percent of GDP.
178. On cash basis, Overall balance is a deficit of GH¢56.9 billion, equivalent to 4.1 percent of GDP. The  corresponding Primary balance on cash basis is a  surplus of GH¢7.3 billion, equivalent to 0.5 percent of  GDP.
179. Mr. Speaker, the cash deficit of GH¢56.9 billion is  expected to be financed from both foreign and  domestic sources. Total Foreign net financing will  amount to GH¢21.4 billion (1.5% of GDP). Foreign  financing will include a provision for financing from  IMF-ECF programme disbursements of US$720  million and World Bank Development Policy  Operation (DPO) funding of US$600 million.
180. The residual Net Domestic Financing, will amount to  GH¢36.9 billion (2.6% of GDP), representing 65.0 percent of the total financing for 2025. This is expected to be sourced from the issuances of debt at  the short end of the domestic market.

2025 Debt Policy Objectives and Liability Management  

181. Mr. Speaker, the government will take steps to re open the domestic bond market to extend the  maturity profile. The reopening will be executed  cautiously to establish large-sized benchmarks bonds  that will enhance market liquidity.
182. To further reduce risk on the debt portfolio,  government will build sufficient cash buffers to  support effective implementation of the liability  management strategies.
183. This will help smoothen the redemption profile and  mitigate refinancing /rollover risks associated with  the debt portfolio.
184. Mr. Speaker, the Government in 2025 and the  medium term, will implement liability management  operations to manage the risks imbedded in the  Eurobond debt portfolio.
185. Mr. Speaker, beginning 2025, we will commence the  operationalization of section 37 to 44 of the Public Financial Management Act, 2016 (Act 921) for the  first time since the passage of the Act in August 2016  to build sufficient buffers in the Sinking Fund as our  landmark reform to manage our public debt.

Yield Curve (Interest Rates) in 2025 

186. Mr. Speaker, I am pleased to report that our  government’s proactive fiscal management has  yielded a significant reduction in treasury bill rates.  This achievement is a testament to the positive shift  in investor sentiment regarding our country’s  economic outlook.
187. Mr. Speaker, on 7th January 2025, we inherited a 91- day treasury bill rate of 28.19 percent. Just two  months into this administration, we have successfully  reduced this rate to 17.72 percent as at Friday, 7th March 2025. This represents a reduction of 1,047  basis points.
188. Similarly, on 7th January 2025, we inherited a 182- day treasury bill rate of 28.92 percent. We have  successfully reduced this rate to 18.97 percent as at  Friday, 7th March 2025. This represents a reduction  of 995 basis points in two months.
189. Again, on 7th January 2025, we inherited a 364-day  treasury bill rate of 30.15 percent. We have  successfully reduced this rate to 19.93 percent as at  Friday, 7th March 2025. This represents a reduction  of 1022 basis points in just two months.
190. Mr. Speaker, on average, rates have fallen by over  1000 basis points, signifying a strong investor  confidence, crowding-in the private sector, reduction  in the cost of doing business and overall acceptance  of the economic policies of the Mahama  Administration, ultimately laying the groundwork for  sustained macroeconomic stability.

SECTION FOUR: KEY POLICY INITIATIVES AND  RESOURCE ALLOCATION 

191. Mr. Speaker, the key policy interventions to support  the economic transformation and job creation  agenda include the following:

i 24-Hour Economy aimed at stimulating  economic growth by creating an enabling  environment for businesses and institutions to  operate 24/7 in three shifts of eight hours  each to boost production, promote  productivity, and generate well-paying jobs.  We will be presenting the policy to Parliament  in due course for consideration. Accordingly,  the Labour Act, the GIPC Act and other  enabling legislations will be reviewed;

ii roll out the implementation of our $10 billion  “Big Push” policy for strategic infrastructural  development to open up the country and drive  sustainable economic growth and  transformation under the 24-Hour Economy  policy;

iii The Ghana Gold Board (GOLDBOD). Mr.  Speaker, we are establishing the Ghana Gold  Board (GOLDBOD). Its primary objective will be to support foreign exchange inflows and  gold reserve accumulation for the benefit of  our dear country. To achieve this, the  GOLDBOD shall regulate, oversee, monitor  and undertake the purchasing, assaying,  refining, exporting, selling and other related  activities concerning the gold resources of  Ghana;

iv stabilise the Ghana Cedi and macroeconomy  through an urgent economic recovery  programme to shore up our foreign reserves.  In addition, develop a deliberate policy to  build economic buffers through external  reserves to cushion the Ghana Cedi;

v implement an Economic Transformation  Agenda underpinned by structural reforms  anchored on promoting modernised agriculture, agri-business and value addition  for import substitution, exports and job  creation;

vi complement monetary policy with fiscal and real  sector policies to reduce inflation. Food inflation  will be reduced through the Agriculture for  Economic Transformation Agenda (AETA) anchored in the 24-Hour Economy Policy;

vii undertake key structural reforms to support  inclusive economic growth, fiscal and debt  sustainability, sound public financial  management, efficient public service delivery  and good governance;

viii restructure the Bank of Ghana to strengthen  its independence and operational efficiency to  deliver more effectively on its price, financial  stability and development mandate;

ix enhance social protection through the  introduction of various social intervention  programmes to complement existing  programmes to alleviate the current economic  hardships and protect the vulnerable; and

x use government procurement to drive a  “Made-In-Ghana agenda to promote the  production and consumption of made in  Ghana goods. To demonstrate this  commitment, I came to this budget  presentation with a bag proudly made in  Ghana by Horseman.

Ghana Labour Export Programme 

192. Mr. Speaker, beginning this year we will  formalize the export of Ghanaian labour to  other countries. This will ensure a structured  and beneficial system for Ghanaian workers  seeking employment abroad and create safer,  legal pathways for them to work in foreign  countries while protecting their rights and  welfare.
193. This will also reduce illegal migration, prevent  worker exploitation, and maximize the  economic benefits of remittances and boost  foreign exchange earnings.

2025 Allocations to Key Policy Initiatives and  Interventions  

194. Mr. Speaker, we will provide a Cedi equivalent of  US$279 million as a revolving fund for the Ghana  Gold Board (GOLDBOD) to be able to purchase and  export at least 3 tonnes of gold per week from small  scale miners.
195. Mr. Speaker, we have allocated GH¢13.85 billion for  the Big Push Programme.
196. Mr. Speaker, an amount of GH¢499.8 million has  been allocated for the No-Academic-Fee policy for all  first-year students in public tertiary institutions  under the ‘No-Fees-Stress’ initiative.
197. Mr. Speaker, we have allocated GH¢292.4 million to  commence the distribution of free sanitary pads to  female students in primary and secondary schools.
198. Mr. Speaker, we have allocated GH¢242.5 million to  support victims of the Akosombo dam spillage;
199. We have also allocated an amount of GH¢200 million  to support the victims of tidal wave disaster that  recently displaced residents of Agavedzi and  surrounding communities in the Ketu south  constituency;
200. Mr. Speaker, the overarching concern about free  secondary education has been its quality and the  absence of a dedicated source of funding. H.E President John Mahama has resolved the funding  challenge by uncapping the GETFund. This makes  available dedicated funds for the full financing of free  secondary education and free tertiary education for  Persons with Disability (PWDs).
201. Consequently, the Capping and Realignment Act will  be amended to uncap Ghana Education Trust Fund (GETFund) and amend the GETFund Act to provide  for full funding of the Free Senior High School  education.
202. Mr. Speaker, this year the budget for the free  secondary education programme is GH¢3.5 billion.  By uncapping the GETFund, we will be making  available an additional GH¢4.1 billion to the  GETFund, specifically for the financing of the free  secondary education programme and other related  expenditures.
203. Aside the uncapping of GETFund, we have also  absorbed the debt service, made up of interest and  principal, from the Daakye bond GETFund  contracted.
204. Mr. Speaker, we have also allocated an amount of  GH¢564.6 million for comprehensive provision of  free curricula-based textbooks covering the  following:

i four (4) sets of KG books and workbooks for about  2.8 million learners;

ii four (4) sets of primary textbook for 800,000  learners; and

iii nine (9) sets of JHS 3 textbooks for 540,000 learners.

205. Under the School Feeding Programme, budgetary  provision has been increased from GH¢1.344 billion  to GH¢1.788 billion in 2025, representing an 33%  increase. The allocation for 2025 reflects an increase  in the feeding cost per meal per child per day from  GH¢1.50 to GH¢2.00, representing 33.3%.
206. Mr. Speaker, government has allocated GH¢145.5  million to the Capitation Grant, up from GH¢84  million in 2024, this an increase of 73.2% over the  previous year’s allocation.
207. We have also allocated GH¢203 million for the  payment of the Teacher Trainee allowances and  another GH¢480 million for Nursing Trainee  allowances.
208. Mr. Speaker, we have uncapped the National Health  Insurance Levy (NHIL). An amount of GH¢9.93 billion  has been programmed for the National Health  Insurance Scheme (NHIS) for:

i claim payments;

ii essential medicines;

iii vaccines payments;

iv the Free Primary Healthcare;

v the Ghana Medical Care Trust  (MahamaCares); and

vi bridging of the USAID financing shortfall,  among others.

209. In 2025, Government will continue to implement  reforms and increase budgetary allocations to  enhance the implementation of the four targeted  social protection programmes, namely NHIS, the  LEAP Programme, the School Feeding Programme,  and the Capitation Grant.
210. Mr. Speaker, under the LEAP programme, benefits  has been indexed to inflation and the number of  beneficiary households will be increased from  350,000 to 400,000 from July 2025.
211. The allocation for LEAP benefits have also been  increased by 30.8% from GH¢728.8 million to  GH¢953.5 million in 2025. Additionally, the budget  for the School Feeding Programme as well as the cost  of feeding per pupil per day has been increased by  33%.
212. Similarly, the allocation to the Capitation Grant has  been increased from GH¢84 million in 2024 to  GH¢145.5 million in 2025, representing an increase  of 73.2%.
213. Mr. Speaker, we have also uncapped the Road Fund.  An amount of GH¢2.81 billion has been programmed  for the Ghana Road Fund to be used solely for road  maintenance. This represents an increase of 155.5%  over the 2024 allocation of GH¢1.1 billion.
214. Mr. Speaker, we have allocated an amount of  GH¢7.51 billion to the District Assembly Common  Fund (DACF). In accordance with our decentralization  policy objective, we propose to Parliament that a  minimum of 80% of the funds should be sent directly  to the District Assemblies to spur economic growth  at the district level and deepen decentralization.
215. Mr. Speaker, it is worth noting that, this is in stark  contrast to what has happened to the District  Assembly Common Fund (DACF) in recent years  where less than 50 percent of the released amount  to DACF goes to the District Assemblies, with a  significant portion spent at the center.
216. Mr. Speaker, we have allocated an amount of GH¢1.5  billion for Agriculture for Economic Transformation  Agenda (AETA) of which Feed Ghana Programme,  Ghana Grains Development Project, Vegetable  Development Project and Nkokor Nketenkete are all  key components.
217. Mr. Speaker, we have also allocated GH¢51.3 million  as seed fund for the establishment of the Women’s  Development Bank.
218. Mr. Speaker, we have also allocated GH¢300 million  to the National Apprenticeship Programme.
219. Mr. Speaker, we have also allocated GH¢100 million  to the ‘Adwumawura’ Programme.
220. Mr. Speaker, for the National Coders Programme, we  have allocated GH¢100 million.
221. Mr. Speaker, an amount of GH¢100 million has been  allocated for the payment of monthly allowance to all  Assembly Members.
222. Mr. Speaker, in response to the recent tidal waves  disaster that displaced residents of Agavedzi and  surrounding communities in the Ketu South  constituency, we have also allocated enough  resources to the Ministry of Works and Housing to  address the challenge.

Sector Performance and Outlook 

223. Mr. Speaker, sector Ministers, will be presenting to  this House a detailed sectoral performance and  outlook as well as sector specific policy interventions  to deal with the challenges at various MDAs.
224. This is a departure from the norm where Ministers for Finance present detailed sectoral performance as  part of the budget speech.

SECTION FIVE: CONCLUSION 

225. Mr. Speaker, the state of the economy as I have just  presented, does not reflect an economy that has  turned the corner; it reflects an economy in severe  distress, burdened by debt repayment humps,  mismanagement and a lack of accountability.
226. This budget sets Ghana on a path of fiscal  responsibility, debt sustainability, macroeconomic  stability and job creation. It is about resetting the  economy and restoring hope.
227. Ghanaians reaffirmed their faith in a better future  when they actively participated in the National  Economic Dialogue on 3rd and 4th March, 2025.
228. A key outcome of the Dialogue was the confirmation  that the fundamental problem with our economy is  fiscal indiscipline.
229. The NPP administration awarded contracts outside  the expenditure framework.
230. They borrowed over and above Ghana’s capacity to  repay.
231. Mr. Speaker, H.E President John Mahama’s  administration will be fiscally disciplined and deliver improved public services to our people in a cost effective manner.
232. We remain steadfast in meeting the IMF programme  targets while restoring Ghana’s creditworthiness.
233. We have achieved a lot in a short time, but this is only  the beginning. Our commitment to reform will not  waver.
234. Those who doubt our resolve underestimate the  determination of the people of Ghana, who will no  longer tolerate ineffective governance.
235. Together, we will navigate these turbulent times and  emerge stronger.
236. Mr. Speaker, we are making progress:

i We committed to running a lean and efficient  government of 60 ministers – We have delivered!

ii We committed to Scrapping the E-Levy – We have  delivered!

iii We committed to scrapping the Betting (winnings) tax – We have delivered!

iv We committed to eliminate academic fees for first  year public tertiary students – We have delivered!

v We committed to providing free tertiary education  for all People With Disability – We have delivered!

vi We committed to having a dedicated source of  funding for free secondary education – We have  delivered!

vii We committed to distributing sanitary pads to our  schoolgirls – We have delivered!

viii We committed to uncap the GETFund– We have  delivered!

ix We committed to uncap the NHIL– We have  delivered!

x We committed to uncap the Road Fund– We have  delivered!

xi We committed to hold a National Forum on  Education – We have delivered!

xii We committed to hold a National Dialogue on the  Economy – We have delivered!

xiii We committed to deliver Free Primary Healthcare  – We are delivering!

xiv We committed to deliver the MahamaCares  programme to finance the treatment of non communicable diseases – We are delivering!

xv We committed to deliver free textbooks to school  children – We are delivering!

xvi We committed to sustainable debt management – We are delivering!

xvii We committed to implement the US$10 billion Big  Push Programme for accelerated infrastructure  development – We are delivering!

xviii We committed to a Constitution Review process – We are delivering!

xix We committed to build the Ghana we want  together – We are delivering!

xx We committed to Recover All Looted State Funds  under our Operation Recover All Loot programme  – We are delivering!

xxi We committed to Reset Ghana – We are delivering!

237. Mr. Speaker, I call on Parliament, the business  community, civil society, investors, and all citizens to  support the bold reforms outlined in this budget.
238. Together, we have the power to build a resilient  economy that not only tackles today’s challenges but  secures a prosperous future.
239. This budget is a foundation upon which we will build  a more resilient and equitable society.
240. This budget is not just about numbers—it is a  blueprint for growth, stability, and opportunity.
241. With unity and determination, we can restore faith in  our economy, foster innovation, and uplift every  Ghanaian.
242. Mr. Speaker, on behalf of His Excellency President  John Dramani Mahama, I invite this august House to  join hands as we work to build the Ghana we want together.
243. Mr. Speaker, I so move.

Thank you.