Hon. Abena Osei-Asare, Member of Parliament for Atiwa East and former Minister of State at the Ministry of Finance, has raised critical concerns about the 2025 budget presented by the NDC-led Mahama administration.
She argued that despite its stated objectives of macroeconomic stability, expenditure rationalization, revenue optimization, debt reduction, and fiscal sustainability, the budget is riddled with inconsistencies that undermine these goals.
Osei-Asare highlighted contradictions in the government’s fiscal policy, noting that despite claims of prioritizing expenditure rationalization, overall government spending has seen a significant increase.
She pointed out that total expenditure rose from GHS 226 billion in 2024 to GHS 268.7 billion in 2025.
Additionally, the appropriation for 2025 stands at GHS 290.7 billion, a sharp rise compared to GHS 250 billion in 2024. These figures, she argued, raise concerns about the government’s commitment to fiscal discipline.
“Compensation for OGM staff increased by 729% from GHS 326 million in 2024 to GHS 2.7 billion. Total allocation for OGM increased by 221%, despite the claim that the government is ‘lean’.”
Hon. Abena Osei-Asare
Additionally, GHS 70 million has been allocated to a vague “Research Department” under OGM, while crucial economic interventions such as the Women’s Development Bank received only GHS 51.3 million.
Similarly, the State Interests and Governance Authority (SIGA), which oversees state-owned enterprises (SOE) reforms, was allocated just GHS 15 million, despite SOEs being a key area for waste reduction.
Revenue Mobilization Efforts and Taxation Policies Under Scrutiny
Furthermore, Hon. Abena Osei-Asare criticized the government’s revenue mobilization approach, pointing out that while the budget claims to enhance tax collection, it fails to make substantial progress.
She noted that the previous NPP administration achieved a 15.9% tax-to-GDP ratio with total revenue of GHS 186 billion in 2024, while the 2025 budget only targets 16.1%, amounting to GHS 224 billion, a marginal increase despite purported tax reforms.
She also decried the abolition of key taxes, including the E-Levy and COVID-19 levy, without viable revenue alternatives.
“The government claims reducing the tax refund amount from 6% to 4% will recover GHS 3.8 billion, but the E-Levy and COVID-19 levy alone accounted for about GHS 5 billion, leaving a gap of GHS 1.2 billion.”
Hon. Abena Osei-Asare
The extension of the Special Import Levy from 2025 to 2028, as well as an increase in the Growth and Stability Levy from 1% to 3%, raised additional concerns about long-term economic stability.
“If the government were sensitive to the data, it would have realized that this is one tax that businesses found difficult to pay. In 2024, despite domestic revenue targets being exceeded, returns from this tax fell far short of expectations (even at 1%). The feasibility of businesses handling a 3% levy is questionable.”
Hon. Abena Osei-Asare
Osei-Asare also raised concerns about the government’s dependence on gold-based revenue projections, particularly through GoldBod.
She questioned the viability of using GoldBod as a tool to stabilize the cedi, noting that there is no historical precedent for its success.
She pointed out that a substantial GHS 279 million has been allocated to the initiative, with its CEO already discussing plans to procure excavators and other mining equipment—ventures she dismissed as extravagant.
Accordingly, she argued that GoldBod represents yet another bureaucratic intervention that risks stifling private enterprise in the mining sector while adding to the government’s growing expenditure.
Meanwhile, the 2025 budget projects a 4% GDP growth rate, significantly lower than the 5.7% growth recorded in 2024.
Osei-Asare questioned why the government’s economic “reset” was not reflected in a higher growth target.
On debt-to-GDP, she acknowledged the reduction to 61.8% in 2024 from 73% in 2016 but argued that this was due not only to debt restructuring but also to economic expansion driven by previous policies.
“The import cover is expected to reduce from four months in 2024 to three months in 2025, raising further concerns about Ghana’s ability to manage external obligations.”
Hon. Abena Osei-Asare
Banking Sector Bailout and Interest Payment Issues
Moreover, Hon. Osei-Asare expressed doubts over the government’s plan to allocate GHS 10.4 billion for another financial sector bailout, even though the banking sector is not in distress.
“Prior to the banking sector cleanup, consultants were engaged to estimate costs, but this time, no clear justification has been provided.”
Hon. Abena Osei-Asare
She also noted inconsistencies in interest payments, stating that despite the savings of $8.1 billion from the Debt Exchange Program, budgeted interest payments have still increased.
While the government claims to increase domestic capital expenditure, the budget fails to allocate funds to key infrastructure projects such as Agenda 111 hospitals and the Accra-Tema Motorway reconstruction.
Instead, the “Big Push” infrastructure initiative is projected to cost $10 billion, yet only $800 million is allocated for the first year.
“Extrapolating over four years, only about $4 billion will be spent, far short of the $10 billion target. Instead of properly funding infrastructure, the government is reallocating resources from SME programs to fund the Big Push, which lacks detailed execution plans.”
Hon. Abena Osei-Asare
Osei-Asare concluded that the government’s budgetary allocations expose a disconnect between rhetoric and reality.
The lack of consistency, misallocation of funds, and unrealistic revenue projections threaten Ghana’s economic stability. “Instead of a true reset, this budget risks worsening economic instability.”
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