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Former Minister of State at the Ministry of Finance under the previous New Patriotic Party (NPP) government, Abena Osei-Asare has downplayed President John Dramani Mahama’s maiden Budget Statement and Fiscal Policy stating that it is riddled with credibility issues.

According to her in terms of revenue for this year 2025, the real growth and total revenue and grant as on page 132 of the budget and 134 is just 0.2 percentage point.

Addressing the media on Thursday, March 13, 2025, she indicated that they left it at15.9 percent tax to GDP and an economy that they claim to be resetting is only growing revenue by 0.2 percent; that is 16.1 percent of GDP at the end of last year.

The revenue numbers were 182 billion Ghana cedis and they want to grow it to 224 billion Ghana cedis in 2025, the growth in real terms is not encouraging, she said.

“If you listen to the Minister of Finance Dr. Ato Forson in paragraph 173 they are projecting a tax revenue of 17. 2 percent as two different figures are being thrown here.
The real details are in the budget appendix and there is a problem with the credibility of the 2025 budget.”

“We have laid a solid foundation for this government to operate and its very disingenuous for them to create the impression that we left them with an economy full of problems”.

A few months ago, the IMF concluded its third programme, just a section of the staff report Ghana’s policy and support under the IMF programme has continued to deliver encouraging results. Following the financial pressure in 2022 the fund supported project has provided a credible anchor for the government to adjust microeconomic policy and launch comprehensive reforms to restore Macroeconomic stability and debt sustainability, she noted.

“While laying the foundation for higher and more inclusive growth, these efforts are paying off with the growth recovery rapidly with inflation declining despite at a slow pace and the fiscal and external position further improving”, the IMF documents noted.

Kwaku Sakyi-Danso/Ghanamps.com

The orientation organized for Member of Parliament in the ninth Parliament has been very beneficial as it is helping to address the persistent lack of quorum syndrome, Member of Parliament for Pru-East, Emmanuel Kwaku Boam has stated.

According to him leadership of the Majority has had series of meetings, and the whips are whipping their side in line to address the absenteeism that leads to the Minority most of the time raising issues of quorum.

In an interview, he pointed out that an MP can move out to look for opportunities for his or her constituents, but their constituents look forward to making sure they are duly represented on the floor of the House.

Furthermore, constituents might have their own definition to what an MP should do, they equally know that an MP is elected to be on the floor of the House to put forward their plights for actions on them.

“Whatever is supposed to be discussed on the floor, their voices should be heard. Inasmuch as government business needs not surfer, we equally have to be at the chamber. This week it has been okay, and I believe it’s going to continue, and leadership has taken a lot of strategic approach which I cannot disclose here”.

Kwaku Sakyi-Danso/Ghanamps.com

The Member of Parliament for Sunyani West, Millicent Amankwah Yeboah has expressed her disapproval to the expression “women are their own enemies”.

Contributing to a statement on the floor of the House to mark International Women’s Day, she called for conscious effort to erase that perception.

“It is society that has discussed this and this was a conversation that someone started, and we can end that by pulling each other with love, care, compassion and supporting each other; and this needs to start from the home”.

She advocated for conscientizing the young girls to develop self-esteem, confidence and self-actualization then we move to youth and women in leadership; “let us get closer to our young ones”.

The Sunyani West lawmaker also noted that there are many areas that women can lead including politics, business, ministry among others; and urged society to push women to the top, stating that she is happy because this year’s theme is on accelerated action.

“We are moving quickly, and I am pledging to be part of the army to rise and accelerate women, in equity and equalization. I would pledge and encourage the House and our community, we have a lot of women there let us start from our doorstep; with unity we would be able to achieve a lot”.

Kwaku Sakyi-Danso/Ghanamps.com

Minister for Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim has told Parliament the University of Local Government and Development Bill would be re-laid on the floor of the House soon as a joint Bill between himself and the Minister of Education.

According to him, the Bill was submitted to the House last year in the 8th Parliament, but its lifespan has terminated hence the need to re-introduce it.

This came to light on Wednesday, March 12, 2025, when the Member of Parliament for Offinso North Dr. Fred Kyei Asamoah wanted to know when the Bill would be re-introduced to allow the operationalization of the University in Akomadan in is constituency.

He further told the House that Cabinet has just been formed and the 2025 budget presented recently, hence the Ministry would take steps to resubmit the joint request for Executive approval by President John Mahama and subsequently re-laid for Parliamentary approval as soon as practicable.

“Mr. Speaker, it is envisaged that once the necessary approvals are sought, the university will promote academic and professional excellence in local government and development”.

Kwaku Sakyi-Danso/Ghanamps.com

Former Minister for Finance has taken a swipe at President John Dramani Mahama and Finance Minister Dr. Cassiel Ato Forson for lamenting and describing the Ghanaian economy as ‘economy in crises.

He noted that not only had the President stated it during the Message of the State of the Nation Address but same was repeated by the Finance Minister, Dr. Ato Forson at the presentation of this year’s budget statement.

He affirmed, however, that the budget presented on Tuesday, March 11, 2025 by Dr. Ato Forson showed that the economy is strong and not in crises as the new government would want Ghanaians to believe.

Addressing the media on the budget, the former Finance Minister noted that the current Finance Minister was hesitant in announcing the growth figures, same with debt to Gross Domestic Product level.

“The reality is that as at the end of last year 2024 real GDP growth rate was 5.7 percent and this was released by the Ghana Statistical Service confirmed by the Minister of Finance on Tuesday, March 11, 2025, when he presented the budget”.

Again, the New Patriotic Party (NPP) took over from the National Democratic Congress (NDC) with a growth of 3.4 percent in 2016 against 5.7 percent, and if you come to the projected growth for 2025 that is disturbing and disappointing.

Dr. Amin Adam further pointed out that, a resting economy as we are being told is projecting to grow by 4 percent, “how can we say this reset economy would be better than an economy which President Mahama says it was criminally mismanaged, and which grew at 5.7 percent by the immediate past NPP government”.

In terms of Gross International Reserves, again, by the end of 2024 we left 8.9 billion dollars equivalent to four months of import cover while in 2016 they handed over to us 3.5 months of import cover, he added.

In the 2025 budget they are projecting three months of import cover which is worse than what they recorded in 2016. “Are we moving forward or backwards? If a broken economy could leave 4 months of import cover how come a reset economy is contemplating on going back to three month of import cover?”

Kwaku Sakyi-Danso/Ghanamps.com

Government has allocated an amount of GHs 7.51 billion to the District Assembly Common Fund (DACF) administration for onward distribution to all 261 Metropolitan Municipal and district Assemblies across the country.

This was disclosed by Minister for Finance, Dr. Cassiel Ato Forson in the 2025 Budget Statement on the floor of Parliament, Tuesday.

According to the Minister, the government in accordance with our decentralization policy objective has suggested to Parliament to ensure that a minimum of 80% of the funds are transferred directly to the District Assemblies to spur economic growth at the district level in order to deepen decentralization.

“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”, he added.

He added that this is a sharp contrast of 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

“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”, he added.

Emmanuel Frimpong/Ghanamps.com

An amount of GHs 100 million has been allocated for the payment of monthly allowance to all Assembly Members, Minister for Finance, Dr. Cassiel Ato Forson, has disclosed.

The Minister disclosed this when he presented the 2025 Budget statement on the floor of Parliament, Tuesday.

“Mr. Speaker, an amount of GHs 100 million has been allocated for the payment of monthly allowance to all Assembly Members”, the Minister noted.

According to the government, payment of allowances to various Assembly members (both elected and appointed) was necessitated at inspiring them to deliver on their mandate.

President John Mahama, in his first state of the nation address on the floor of Parliament in February this year, bemoaned the neglect and inadequate compensation Assembly members face even though they play a key role in Ghana’s decentralization system.
He therefore promised to provide them with adequate resources in order to enable carry out their mandates efficiently and effectively.

Meanwhile, the government has also released an amount of GHs 7.51 billion to the District Assembly Common Fund (DACF).

According to the Minister for Finance, the government in accordance with our decentralization policy objective has suggested to Parliament to ensure that a minimum of 80% of the funds are transferred directly to the District Assemblies to spur economic growth at the district level in order to deepen decentralization.

He added that this is a sharp 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.

Emmanuel Frimpong/Ghanamps.com

In a bold financial maneuver, Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has redirected portions of the country’s tax refund allocations to fund critical government policies in the 2025 budget. This move, aimed at strengthening social interventions and reducing tax burdens, has sparked national discussions on fiscal discipline and the ethical use of public funds.

During a recent briefing on JoyNews after the presentation of the budget to parliament, Dr. Forson revealed a striking misuse of funds within Ghana’s tax refund system. The Revenue Administration Act, introduced in 2016 under former Finance Minister Seth Terkper, mandated that 6% of all revenue be set aside for tax refunds. However, an internal review of the account showed that from 2017 to 2024, only 43% of the accumulated GH₵26 billion had been used for its intended purpose.

The remaining 57%, amounting to over GH₵14 billion, was allegedly misapplied. According to the finance minister, this misallocation raised serious concerns about the management of public funds and the potential impact on taxpayer confidence. “We cannot continue this practice,” Dr. Forson emphasized, signaling a shift towards greater fiscal accountability.

To rectify this issue, the government has decided to reduce the tax refund allocation from 6% to 4%, freeing up GH₵3.8 billion in the 2025 budget. The finance minister strategically directed these funds towards social interventions and tax relief measures, ensuring that the reallocated resources directly benefit the Ghanaian people.

The breakdown of the reallocation is as follows:

• Abolishing the E-Levy would result in a revenue loss of GH₵1.9 billion from the GH₵3.8 billion reallocated fund, but it aims to ease financial burdens on individuals and businesses.
• Scrapping the betting tax would lead to a revenue loss of GH₵180 million.
• After these deductions, the government would still have GH₵1.7 billion remaining for critical social interventions.

• Social Interventions (GH₵1.7 billion total):
  • Local Governance Support (Assembly Members Allowances): GH₵100 million was granted to assembly members to enhance local development initiatives.
  • Sanitary Pad Distribution: GH₵499.5 million was allocated to provide free sanitary pads for schoolgirls, addressing menstrual health challenges.
  • Capitation Grant Increase: A 73% increase in the capitation grant was funded to support basic education.
  • Textbooks and School Feeding: Additional funds were directed towards improving textbook availability and expanding the school feeding program.

Dr. Forson’s approach represents a shift in Ghana’s fiscal management, prioritizing direct social benefits over unchecked bureaucratic expenditures. By repurposing funds from a historically mismanaged account, the Finance Ministry has demonstrated a commitment to financial prudence and equitable resource distribution.

However, the move raises questions about long-term sustainability. Will reducing the tax refund allocation create future financial gaps? These concerns highlight the need for transparent oversight and structured financial planning to prevent unintended economic disruptions.

Ghana’s 2025 budget reflects a deliberate effort to balance economic efficiency with social responsibility. Dr. Cassiel Ato Forson’s financial engineering has enabled the government to abolish unpopular taxes while funding essential social programs. As the nation moves forward, ensuring accountability in fund utilization will be crucial to sustaining public trust and economic stability.

The real test lies ahead: will this strategy yield the intended benefits without compromising fiscal integrity? Only time will tell.

Shang Annang Papa Nii/Ghanamps.com

The Minister of Finance Cassiel Ato Forson has assured that despite the troubling state of the Ghanaian Economy, they are poised to fix it and return the country to the path of sustainable growth.

“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. We will take strong measures to confront the situation head-on.

Presenting the 2025 Budget and Fiscal Policy of Government in parliament, he noted that the sacrifice of achieving this must come from all stakeholders, beginning with the government, adding that it is the reason the president, appreciating this significantly downsized  his government from “the elephant 88 to 60 ministers as well as government ministries from 30 to 23.

“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”.

The Finance Minister, thus announced that the resetting agenda will be anchored on three pillars:

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.

Ghanamps.com