First and foremost, we commend President John Mahama’s government for the 2025 Budget, which captures a few of their policies and programs (about 10%) promised to Ghanaians during the 2024 general elections.
However, there are some weaknesses and inconsistencies in the 2025 Budget that Ghanaians need to be aware of:
- Resetting the Economy and Creating Prosperity for All (Chapter 1 of the 2024 NDC Manifesto). According to the 2024 NDC Manifesto, to achieve macroeconomic stability and restore fiscal and debt sustainability for long-term economic growth and prosperity, the government will:
(a) Scrap import duties on vehicles and equipment imported for industrial and agricultural purposes. Unfortunately, there was no mention of scrapping this tax regime in the 2025 Budget.
(b) Reduce food inflation to lower the high cost of living through agriculture for economic transformation (point 9, page 3, 2024 NDC Manifesto). However, only GHc1.5 billion was allocated to Agriculture for Economic Transformation Agenda (AETA), which includes the Feed Ghana Programme, Ghana Grains Development Project, Vegetable Development Project, and Nkokor Nketenkete.
Meanwhile, the Ghana Gold Board (GoldBod) was allocated US$279 million, equivalent to over GHc4.3 billion, to regulate the gold trading business in Ghana. This raises questions about the government’s priorities, as the allocation to GoldBod is significantly higher than that for Agriculture.
The decision to allocate more resources to GoldBod at the expense of Agriculture can be described as a misjudgment, as Food and Agriculture are more crucial for human survival and well-being than gold trading. Moreover, gold trading does not contribute significantly to Ghana’s GDP compared to Agriculture.
(c) Prioritize investments in productive sectors (point 1, 1.1.2, 2024 NDC Manifesto). Unfortunately, the 2025 Budget failed to allocate significant investments in productive sectors.
(e) Manage exchange rates and inflation (point 2, 1.2.2, 2024 NDC Manifesto). The government plans to review the Foreign Exchange Act 2006 (Act 723) to manage exchange rates and inflation. However, the 2025 Budget states that the establishment of GoldBod will be the key measure to stabilize exchange rates, inflation, and fuel prices.
(f) Roll out the “Big Push” program. The government plans to implement a US$10 billion “Big Push” policy for strategic infrastructure development. However, only GHc13.85 billion (approximately US$900 million) was allocated for this program.
In conclusion, the UP Tradition Institute questions the government’s decision to allocate a significant budget to GoldBod while neglecting critical sectors like Agriculture. The institute also raises concerns about the government’s priorities and the potential consequences of these decisions.
Signed,
Kwabena Owusu Junior
Chief Executive Officer
UP Tradition Institute
