Today Ghana’s Finance Minister, Dr Cassiel Ato Forson presented the 2025 Budget, the first financial roadmap under President John Dramani Mahama’s administration. Under the theme Resetting the Economy for the Ghana We Want, the budget seeks to tackle the country’s economic challenges and lay the foundation for long-term growth.
But beyond the figures and policy statements, what does this budget mean for the average Ghanaian? Will it ease the cost of living, create jobs, and improve essential services? Let us break it down.
Ghana’s Economic Struggles: What’s at Stake?
The government acknowledges that Ghana’s economy is in serious distress. Many families are struggling with the rising cost of goods, businesses are facing financial constraints, and government institutions are struggling to pay workers. Inflation is high, the cedi is losing value, and the country’s debt burden continues to grow.
In response, the government has outlined plans to stabilise the economy through policy reforms and legal changes. However, the big question for most citizens is: Will these measures bring real relief, or will they remain empty promises?
Inflation: Will Prices Finally Come Down?
One of the biggest concerns for Ghanaians is inflation the rate at which prices of goods and services increase. Over the past two years, inflation has remained alarmingly high, rising from 23.2% in 2023 to 23.8% in 2024. This has led to skyrocketing prices for food, fuel, and transportation, making it harder for families to afford basic necessities.
The budget outlines strategies to control inflation in collaboration with the Bank of Ghana. This includes efforts to stabilise the exchange rate and manage government spending. However, citizens remain sceptical. Will these policies actually bring down the cost of food, transport fares, and utility bills? If not, many households will continue to struggle.
Jobs and the 24-Hour Economy: Real Opportunity or Empty Hype?
Unemployment especially among young people remains a pressing issue. Many graduates and skilled workers are finding it difficult to secure jobs, leading to frustration and economic hardship.
To address this, the government has introduced the 24-Hour Economy Policy, which encourages businesses to operate around the clock to boost job creation and productivity. This could be a game-changer, offering more employment opportunities in industries such as retail, manufacturing, and hospitality.
However, for this policy to work, several key conditions must be met:
- Stable Electricity Supply: Businesses need reliable power to operate efficiently at night. Frequent power outages (dumsor) could undermine the initiative.
- Security and Transportation: Workers need safe and accessible transport options to commute at night. Without these, many may be reluctant to take up night shifts.
- Support for Small Businesses: Many small and medium enterprises (SMEs) lack the capital to extend their operations into the night. Will the government provide incentives or funding to help them transition?
Without addressing these challenges, the 24-hour economy may remain an ambitious idea rather than a practical solution for job creation.
Debt and Government Spending: Can We Avoid More Borrowing?
Ghana’s debt situation is alarming. By the end of 2024, the government owed GH¢67.5 billion about 5.2% of the country’s total economic output (GDP). This massive debt affects everything from government salaries to social services and infrastructure projects.
The government has promised to enforce stricter financial discipline through the Public Financial Management Act. But will this actually reduce borrowing, or will Ghana continue accumulating more debt with limited accountability? If debt levels remain high, future budgets may have to prioritise debt repayments over essential public services.
Energy Crisis: Will ‘Dumsor’ Make a Comeback?
Ghana’s energy sector continues to face serious financial challenges. Despite allocating GH¢20.8 billion to support energy financing in 2024, power outages remain common, disrupting businesses and daily life. The government has warned that if urgent reforms are not implemented, energy sector shortfalls could reach GH¢35 billion in 2025.
The big question is: How will the government address these inefficiencies? Without a clear and sustainable solution, Ghanaians could face continued unreliable electricity supply and rising utility bills.
Cocoa Farmers and Rural Livelihoods: A Sector in Crisis
Cocoa is one of Ghana’s most important exports, supporting millions of farmers and their families. However, the industry is in trouble due to mismanagement and declining production. Poorly structured forward sales contracts have cost the country up to US$840 million in revenue losses.
This has had a direct impact on cocoa farmers, many of whom face delayed payments and reduced earnings. The budget acknowledges these challenges but does not outline concrete measures to ensure fair pricing, timely payments, and better value chain management. Without urgent action, rural livelihoods will continue to suffer.
Public Sector Salaries and Social Protection: When Will the Money Come?
Many government workers, including pharmacists, have gone unpaid since June 2023. During pre-budget consultations, public sector employees raised concerns about salary arrears and delays in disbursement of funds for essential services.
While the government has pledged to address these issues, many citizens remain skeptical. Vulnerable groups such as pensioners, persons with disabilities, and those relying on social protection programmes, will be watching closely to see if the budget delivers the promised financial support.
Corruption and Financial Mismanagement: Will We See Real Action?
Year after year, Ghana’s Auditor-General releases reports exposing corruption in public spending ghost workers on government payrolls, inflated contracts, and mismanaged funds. The 2025 budget includes measures to improve transparency and accountability, but Ghanaians are tired of empty promises.
Real change requires:
- Strengthening anti-corruption institutions to ensure they have the resources and independence to investigate financial crimes.
- Strict enforcement of procurement laws to prevent inflated contracts and misused funds.
- Punishing corrupt officials, rather than allowing them to continue operating with impunity.
Without these, public confidence in government spending will remain low.
Final Thoughts: A Budget of Promises But Will It Deliver?
The 2025 budget is packed with ambitious plans to reset Ghana’s economy. But the real test lies in its execution. Will inflation actually drop? Will jobs be created? Will corruption be tackled head-on?
Ghanaians will be watching closely to see if this budget delivers real change or becomes another document of unfulfilled aspirations.
What Can You Do?
- Stay Informed and Speak Up: Follow budget discussions, question government decisions, and hold leaders accountable.
- Push for Fair Economic Policies: Demand policies that prioritise job creation, lower inflation, and better social services.
- Adapt to New Opportunities: Entrepreneurs and businesses should explore ways to benefit from the 24-hour economy while pushing for proper infrastructure.
- Engage in Public Discussions on Energy and Debt Issues: Ensure that conversations on energy reforms and debt management remain a priority.
- Demand Stronger Anti-Corruption Measures: Advocate for stricter enforcement of laws to prevent financial mismanagement and protect public funds.
A Call to Action
Ghana’s economic recovery will not happen overnight. It requires commitment, transparency, and a shared responsibility between the government and its people. The 2025 budget presents an opportunity to set the country on a path of economic transformation, but this will only happen if policies are effectively implemented and citizens remain actively engaged.
As Ghanaians, we must ask: Are we simply waiting to see what happens, or are we ready to take action and shape our future? The choice is ours.
