Finance Minister Dr. Cassiel Ato Forson has assured that the 2025 budget will focus on reducing wasteful spending while rationalizing expenditure to direct more funds toward economic growth.
Speaking during an X Space (Twitter) engagement with the youth, which attracted over 60,000 participants on March 9, 2025, Dr. Forson emphasized that the government remains committed to fiscal discipline.
Sectors to Be Affected
Addressing concerns from participants, Dr. Forson noted that expenditure cuts would not hinder economic expansion. He disclosed that the government would prioritize significant allocations to the agricultural sector to enhance food security.
While he refrained from naming specific areas where spending would be reduced, sources within JOYBUSINESS indicate that capital expenditure and non-essential spending across Ministries, Departments, and Agencies could be affected.
Dr. Forson also signaled a possible reduction in total government expenditure for 2025 compared to the GH₵226.7 billion spent in 2024. He acknowledged the challenging state of the economy, stressing the need for new policy measures to restore stability.
“This may impact some of the projects and programs the government plans to introduce this year,” he cautioned.
“We will front-load the fiscal consolidation program to accelerate economic growth and contain the rising debt stock,” he added.
Revenue measures
Revenue Measures
On revenue generation, Dr. Forson revealed plans to rationalize the tax structure, particularly the Value Added Tax (VAT), while rolling out initiatives to improve tax compliance.
Additionally, he announced an increase in the daily food allowance per pupil under the School Feeding Programme to GH₵2.00, with further details to be outlined in the 2025 budget.
Budget Inputs and Engagements
Dr. Forson clarified that the 2025 budget is still being finalized, assuring that feedback from the engagement would be incorporated.
“These engagements are very important, and the views shared will be captured in the 2025 Budget,” he stated in response to concerns that public input might be overlooked.
The government is expected to present the budget in the coming weeks.
ALSO READ: