The Minister of Finance of the Republic of Ghana, Dr. Cassiel Ato Forson, has presented key allocations in the 2025 Budget, outlining government priorities in infrastructure, health, social protection, agriculture, and economic transformation.
Addressing Parliament during the presentation of the 2025 Budget and Financial Statement, the Member of Parliament for Ajumako Enyan Essiam emphasized the NDC administration’s commitment to equitable resource distribution, sectoral development, and targeted interventions aimed at improving the livelihoods of Ghanaians.
The 2025 Budget places significant emphasis on social welfare programs, particularly for vulnerable communities.
The government has pledged to increase budgetary allocations for four key social protection programs: National Health Insurance Scheme (NHIS), Livelihood Empowerment Against Poverty (LEAP) Programme, School Feeding Programme, and capitation Grant.
“Mr. Speaker, we have uncapped the National Health Insurance Levy (NHIL). An amount of GH¢9.93 billion has been programmed for the National Health Insurance Scheme (NHIS) for: claim payments; essential medicines; vaccines payments; the Free Primary Healthcare; the Ghana Medical Care Trust (MahamaCares); and bridging of the USAID financing shortfall, among others”
Dr Cassiel Ato Forson,Ghana’s Minister of Finance
Dr. Forson further announced that GH¢242.5 million has been allocated to support victims of the Akosombo Dam spillage, while an additional GH¢200 million will be directed towards victims of the recent tidal waves disaster in the Ketu South Constituency.
As part of efforts to enhance the impact of the LEAP Programme, the number of beneficiary households will increase from 350,000 to 400,000 from July 2025.
Furthermore, Dr Forson indicated that the allocation for LEAP benefits has been increased by 30.8% from GH¢728.8 million to GH¢953.5 million, ensuring that vulnerable populations receive the necessary financial support to navigate economic challenges.
Strengthening Local Governance and Economic Growth
A key departure from previous budgetary allocations is the government’s renewed commitment to decentralization. Dr. Forson announced that GH¢7.51 billion has been allocated to the District Assembly Common Fund (DACF).
Importantly, the government proposed that at least 80% of the funds should be sent directly to District Assemblies, a significant improvement from past years when less than 50% of released DACF funds reached local authorities.
“This approach aligns with our decentralization policy objective and will spur economic growth at the district level while deepening local governance.”
Dr Cassiel Ato Forson,Ghana’s Minister of Finance
Additionally, the government has allocated GH¢100 million for the payment of monthly allowances to Assembly Members, recognizing their critical role in local governance and grassroots development.
Boosting Agriculture and Economic Transformation
Recognizing agriculture as a key pillar of the economy, the government has allocated GH¢1.5 billion for the Agriculture for Economic Transformation Agenda (AETA).
This fund, according to Dr Forson, will support initiatives such as the Feed Ghana Programme, Ghana Grains Development Project, Vegetable Development Project and “Nkokor Nketenkete” Project.
These initiatives are designed to enhance food security, boost agribusiness, and create employment opportunities for farmers and agripreneurs.
To stimulate job creation and entrepreneurship, the government has earmarked several allocations including GH¢300 million for the National Apprenticeship Programme to enhance vocational training.
There is also the allocation of GH¢100 million for the ‘Adwumawura’ Programme, an initiative aimed at supporting youth employment and GH¢100 million for the National Coders Programme, designed to equip young people with digital and coding skills.
Dr Forson also disclosed GH¢51.3 million as a seed fund for the establishment of the Women’s Development Bank, aimed at providing financial support for women-led businesses.
Dr. Forson further announced a shift in how sectoral budget reports are presented. Moving away from the traditional approach where the Finance Minister provides detailed sectoral performance updates, he stated that “sector ministers will now present detailed reports to Parliament on the performance and outlook of their respective ministries”.
“This will ensure a more transparent and accountable approach to addressing challenges within various Ministries, Departments, and Agencies.”
Dr Cassiel Ato Forson,Ghana’s Minister of Finance
The 2025 Budget, as outlined by Dr. Cassiel Ato Forson, signals a strong focus on infrastructure development, healthcare, social protection, decentralization, agriculture, and job creation.
By increasing allocations for key social programs and committing to equitable resource distribution, the government aims to foster inclusive economic growth.
The proposed reforms, particularly in the DACF, NHIS, and LEAP programs, reflect an effort to ensure that funds directly benefit intended beneficiaries.
