Finance Minister Dr. Cassiel Ato Forson presented the 2025 Budget Statement and Economic Policy to Parliament on Tuesday, March 11, under the theme “Resetting the Economy for the Ghana We Want.”
Described as a blueprint for growth, stability, and opportunity, the budget aims to build a more resilient and equitable society under the Mahama administration.
However, critics argue it fails to address the pressing, everyday challenges facing Ghanaians.
In a press briefing on Thursday, March 13, former Minister for Works and Housing Kojo Oppong Nkrumah criticised the budget for lacking practical solutions to Ghana’s most urgent economic problems.
He highlighted the high cost of living, rising unemployment, and increasing electricity tariffs as key issues either overlooked or inadequately addressed.
Oppong Nkrumah accused the government of failing to meet public expectations, particularly those of young people, households, and small businesses, who had hoped for meaningful relief measures.
He is not the only critic, as former Finance Minister Dr Mohammed Amin Adam was vocal about key issues as he punched holes in the financial document touted as a springboard for economic growth.
As Parliament debates aspects of the budget, with Ghanaians eager for the implementation of key tax reforms, The Ghana Report highlights some key issues missing from the 2025 Budget.
1. Soaring Cost of Living
The 2025 Budget failed to provide clear, practical measures to tackle the rising cost of living, which continues to burden Ghanaians. Consumers are grappling with sharp increases in food prices, water and electricity tariffs, rent, and other essentials.
With inflation still hovering above 23%, utility costs up by over 15%, and food inflation significantly impacting household expenditure, the absence of targeted relief measures is a major concern. Critics argue that the lack of a comprehensive strategy risks worsening the hardship facing millions of households and small businesses.
2. Lack of Clarity on 24-Hour Economy
Despite growing public interest, the budget offered little clarity on the much-touted 24-hour economy policy. Beyond vague references, there was no detailed roadmap, funding plan, or implementation timeline.
At a time when unemployment remains above 13% and businesses face limited operating hours due to high energy costs, a well-structured 24-hour economy could have been a catalyst for job creation and productivity growth. The absence of concrete proposals suggests the policy remains more of a political slogan than a practical economic solution.
3. Neglect of the Tourism Sector
Despite tourism’s potential to drive job creation and economic growth, the budget failed to outline any concrete plans to revive the struggling sector. Tourism contributed 4.9% to GDP in 2022 and supported over 600,000 jobs but has yet to fully recover from the pandemic’s impact.
International arrivals remain below pre-COVID levels, and sector earnings have declined from $3.3 billion in 2019 to $2.5 billion in 2023. The absence of targeted investments, infrastructure upgrades, or public-private partnerships raises concerns about the government’s commitment to revitalizing this high-potential sector.
4. Overlooking the Sports Sector
The budget offered no clear plans or allocations for the development of sports, despite its growing economic and social importance. With youth unemployment exceeding 13%, investment in sports could serve as a strategic tool for job creation, talent development, and community engagement.
In 2023, Ghana’s sports industry contributed an estimated $100 million in direct and indirect economic activity. However, the budget fails to build on this momentum, missing an opportunity to harness the sector’s potential for tourism, national branding, and youth empowerment.
5. Rising Oil Prices
The budget also failed to outline any concrete strategies to cushion Ghanaians against the impact of soaring global oil prices. With Brent crude averaging $85 per barrel and local fuel prices rising by over 18% year-on-year, transport costs have surged, directly fueling inflation, which remains above 23%.
The ripple effect on food distribution, cost of goods, and household incomes has been significant. Despite this, the budget did not propose fuel price stabilization measures, subsidies, or alternative energy strategies to reduce Ghana’s vulnerability to global oil shocks.