Lord Mensah Predicts a Conservative Approach in the 2025 Budget

Professor Lord Mensah, a renowned economist and Finance lecturer at the University of Ghana Business School, has forecasted that the 2025 national budget will be characterized by a conservative approach. According to Prof. Mensah, the government’s priorities will lean toward curbing expenditures while eliminating certain taxes to ease the financial burden on businesses and individuals.

In his remarks, Prof. Mensah expressed confidence that the budget will focus on controlling spending without undermining essential services. He noted, “Based on the signals from the government, it’s clear that we will witness a restrained budget. Expenditures will be moderated, ensuring that critical areas are not overlooked, but there will be a strong emphasis on making sure our financial commitments are measured and aligned with the country’s current fiscal situation.”

One of the most significant changes expected in the 2025 budget is the abolition of several taxes that have generated considerable debate in recent years. The COVID-19 levy, which was introduced to help manage the financial challenges posed by the pandemic, is set to be scrapped, along with the betting tax and the controversial electronic transfer levy (e-levy). These changes come in response to public pressure and concerns about the economic impact of such taxes on citizens and businesses.

Additionally, Thomas Ampem Nyarko, the Deputy Finance Minister-designate, has reassured the public that there will be no new taxes introduced in the upcoming budget. This statement provides some relief to taxpayers who have expressed concern over the potential for further fiscal burdens during a time of economic recovery.

Dr. Cassiel Ato Forson, Ghana’s Finance Minister, has also outlined key strategies aimed at reducing unnecessary government expenditure while improving the country’s domestic revenue generation. Dr. Forson emphasized the importance of identifying areas where fiscal discipline could be applied, stating that prioritizing spending on key sectors that directly impact the economy would be a central theme in the 2025 budget. In addition, he has reiterated his commitment to fostering a sustainable fiscal path, underscoring the need for careful planning and allocation of resources.

Another crucial aspect of the upcoming budget is the government’s focus on incorporating recommendations from the recently concluded National Economic Dialogue. This event brought together various stakeholders, including economic experts, business leaders, and policymakers, to discuss strategies for addressing Ghana’s fiscal challenges and charting a sustainable economic recovery. Dr. Forson has assured that the feedback and proposals from this dialogue will be used to inform the 2025 budget, ensuring that it aligns with the country’s long-term economic goals.

The 2025 budget will be of particular interest to businesses, investors, and the general public as it represents a critical step in Ghana’s ongoing efforts to stabilize and grow its economy after a period of significant challenges. The focus on fiscal consolidation, or the process of reducing budget deficits and stabilizing public debt, will be closely scrutinized by the business community. These measures are expected to play a pivotal role in Ghana’s economic recovery, but it will be important for the government to balance fiscal restraint with the need to fund key public services, infrastructure projects, and social initiatives.

Moreover, the government’s strategy of cutting wasteful expenditures while prioritizing critical sectors such as education, healthcare, and infrastructure is likely to shape the budget’s approach to ensuring that the public sector operates efficiently and effectively. Ensuring that essential services are adequately funded will be crucial in maintaining social stability and supporting long-term growth.

As the government navigates these complex fiscal decisions, businesses and investors will be closely monitoring the outcome of the 2025 budget, particularly as it pertains to taxation policies, spending priorities, and efforts to boost domestic revenue generation. The success of these fiscal measures will ultimately determine the trajectory of Ghana’s economic recovery and its ability to meet the needs of its citizens in the years ahead.