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Finance Minister Presents 2025 Budget, Outlines Economic Recovery Measures

By
Ivy Hollys
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2025 BUDGET
ATO FORSON- 2025 BUDGET

Finance Minister Dr. Cassiel Ato Forson has presented the 2025 Budget Statement and Economic Policy to Parliament, outlining key strategies aimed at stabilizing the economy. The 2025 budget highlights comprehensive measures to address exchange rate fluctuations, which have been a major concern for traders and businesses.

Dr. Forson stated revealed that the overriding concern among Ghanaian traders and businesses remains price and exchange rate stability. Apart from eroding their working capital, Dr. Forson mentioned that exchange rate volatility makes effective business planning impossible and increases the cost of doing business in the country.

“The 2025 budget proposes collaboration with the Bank of Ghana to implement policies that will effectively manage exchange rate inflation,” he said. He also mentioned that the government engaged Ghanaian youth in discussions regarding economic policies. These engagements he said, revealed critical concerns, including the delayed salaries of 321 pharmacists employed since June 2023.

Assuring the affected persons, he said, “We will take urgent steps to remedy this situation immediately.”

State of the Economy: Crisis and Fiscal Challenges(2025 Budget)

The 2025 budget underscored the economic challenges ‘inherited’ by the Mahama administration. Dr. Forson described the state of the economy as one in deep crisis, citing significant debt and fiscal challenges. “Mr. Speaker, hands on heart, we inherited an economy in deep crisis,” he said. He further highlighted large accumulations of arrears, energy sector shortfalls, and financial sector obligations as major hurdles.

The 2025 budget also notes setbacks in fiscal consolidation, even under the International Monetary Fund (IMF) program introduced in 2023. Despite efforts made through domestic bondholders, external creditors, and taxpayers, key IMF performance indicators remain unmet. Dr. Forson said inflation worsened from 23.2% in 2023 to 23.8% in 2024, exceeding the budget target of 15% by 8.8% and surpassing the IMF’s central target of 18% by 5.8%.

Additionally, the primary balance on a commitment basis declined from a 0.2% deficit in 2023 to a 3.9% deficit in 2024. He further hinted that the 2025 budget contained the previous government’s fiscal slippage which resulted in a 4.4 percentage point deviation from the target surplus of 0.5% of GDP.

Addressing Mounting Arrears and Unpaid Contracts

The 2025 budget also focused on some outstanding government arrears, which have severely impacted contractors and suppliers. “As of December 2024, total central government arrears stood at GHS 67.5 billion, representing 5.2% of GDP,” Dr. Forson said.

“When I assumed office on the 23rd of January 2025, my office was inundated with requests for payment from many contractors and suppliers,” Dr. Forson revealed. He mentioned that to address this, the Ministry of Finance requested all Ministries, Departments, and Agencies (MDAs) to submit details of outstanding arrears for validation. Following a special hearing, the ministry confirmed that the government owes GHS 67.5 billion to contractors and suppliers, including GHS 49.2 billion in outstanding interim payments and GHS 18.3 billion in bank transfer advice from the Controller and Accountant General.

The 2025 budget also highlights additional debts outside this amount, including:

  • USD 1.73 billion owed to independent power producers.
  • GHS 68 billion owed by the Electricity Company of Ghana to contractors.
  • GHS 32 billion owed by Ghana Cocoa Board to suppliers.
  • GHS 5.75 billion owed by the Ghana Road Fund.
  • GHS 53 billion needed by the Bank of Ghana to address negative equity challenges.

To ensure proper financial management, the 2025 budget mandates an audit of all arrears before any payments are made. “Mr. Speaker, before a penny will be paid, we will permit an audit of arrears payments to guarantee value for money,” Dr. Forson stated.

Unauthorized Contracts and Financial Violations

Another revelation in the 2025 budget is the unauthorized awarding of contracts by MDAs. Validation reports indicate that contracts worth GHS 194 billion—16.5% of GDP—were awarded without proper commencement certificates or authorization. The road sector alone accounts for GHS 100 billion of these contracts.

“Mr. Speaker, most of these contracts were awarded without commencement certificates and authorization. This is in blatant violation of the Public Financial Management Act 1989,” Dr. Forson noted.

As the The government aims to restore economic stability through strict expenditure controls, exchange rate stabilization, and debt restructuring measures outlined in the budget.

As discussions on the 2025 budget continue in Parliament, stakeholders anticipate further insights into the government’s approach to tackling the nation’s economic challenges.

ECG announces power cut for maintenance works across regions.

By
Adwoa Afranewaa
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ecg

The Electricity Company of Ghana Limited has planned maintenance work in various regions on March 11 and 12, 2025, leading to temporary power cut in the affected areas.

In the Greater Accra region, there would be power outage from 9:00am to 5:00pm at Pokuase Pharmacy, Ayawaso, Nii Ayi, Odumase, Amanfrom, Nsakina, Agbogba, Pantang Royal, and its environs.

The Tema region would also experience power cuts from 9:00 am to 4:00 pm in High Tension, Golf City, Community 17, Fafali, Cambodia, HFC Estates, and its environs.

Tsito and nearby areas in the Volta Region will experience outages from 9:00 am to 2:00pm. 

The Ashanti Region would experience power outage on March 12, 2025 in most areas including Darko, Bebu, Ampabame No.2, Trede, Sabin Akroform, and parts of Pakyi No.2 from 9:00 am to 5:00 pm. Atwima Agogo, Abuakwa, Mankranso, Kunsu, Sepaase, Nkawie, Afari, Abakomade, Kasapreko, Nerebehi, parts of Tanoso, Pokukrom, Seidi, Hiaw Besease, Atwima Koforidua, Ntensere, Tabre, Mpasaetia, Asempanaye, and surrounding areas will be without power from 9:00 am to 6:00 pm.

The ECG also explained the importance of this maintenance and urged businesses whose operations need electricity to prepare accordingly.

Miracles Aboagye Demands NDC Government Fulfills Tax Cancellation Promises

By
Ivy Hollys
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Miracels Aboagye
Miracles Aboagye

Miracles Aboagye, former Communications Director of Dr Mahamudu Bawumia’s 2024 campaign, vowed the opposition will ensure the National Democratic Congress (NDC) cancels unpopular taxes.

Aboagye stressed that Ghanaians voted based on the NDC’s commitment to remove the e-levy, betting tax, and other controversial levies.

“I expect the cancellation of the betting tax, e-levy, COVID tax, and all other promised tax cuts,” Aboagye stated.

He insisted the NDC has a duty to fulfill these promises and warned the opposition would hold them accountable.

The NDC previously criticized these taxes, and Aboagye argued they now have no excuse to maintain them.

“The president must fulfill his promise because they called the e-levy a draconian tax causing hardship,” Aboagye noted.

Miracles Aboagye dismissed any justification for keeping these taxes, calling failure to remove them “the grandest deception the country has ever experienced.”

He also urged the government to reduce import duties on cars and introduce a 24-hour economy, as promised.

“We will ensure all these major campaign promises are implemented,” Aboagye added.

Background

Finance Minister Dr. Cassiel Ato Forson is currently presenting the 2025 Budget Statement and Economic Policy to Parliament today. This unveils the first major economic plan of the Mahama administration.

The budget is expected to outline key policies and strategies to stabilize the economy, drive growth, and address fiscal challenges.

A key highlight is the anticipated removal of several controversial taxes, including the Electronic Transfer Levy (E-Levy), the COVID-19 Health Levy, and the Betting Tax.

These levies, introduced by the previous government, faced criticism for adding financial burdens on Ghanaians.

School Feeding Caterers Welcome Government’s Fee Increase

By
Ivy Hollys
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school feeding
school feeding

The School Feeding Caterers Association has welcomed the government’s decision to raise the feeding fee from GHC 1.50 to GHC 2.00. They described the move as positive but still insufficient.

Finance Minister Dr. Cassiel Ato Forson announced the fee increase during a social media engagement on March 9. He revealed the plan ahead of the 2025 budget presentation today.

The government raised the school feeding grant following ongoing concerns from caterers and education stakeholders. This decision aims to address their long-standing demands.

Nana Otu Sakyi-Amo Twafohene, National President of the School Feeding Caterers Association, expressed gratitude for the increase. He spoke to the media on March 10.

“We were really happy when we heard about the increase,” Twafohene said. He also hoped junior high schools would soon benefit from the program.

He emphasized that sustaining the school feeding program should be a government priority. Increasing the per-child feeding fee is crucial for its success.

“We thank H.E. John Dramani Mahama for listening to caterers,” he added. “We have long advocated for this increment. Though GHC 2.00 is still not enough, we will manage.”

The new feeding rate will take effect from the third term, starting in April.

“Wasteful expenditure is subjective,” – Kojo Oppong Nkrumah talks about expectations for 2025 Budget

By
Ivy Hollys
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Kojo oppong nkrumah on 2025 budget
kojo oppong nkrumah

Kojo Oppong Nkrumah has cautioned against deviating from established figures, warning that relying on manufactured numbers or unverified claims could misrepresent the true financial situation.

Addressing concerns on expenditure management, Nkrumah explained that a cross-party agreement exists on a fiscal consolidation strategy. He recalled the New Patriotic Party’s (NPP) manifesto commitment to remove three specific taxes, explaining why they were not cut immediately. “The budget had already been programmed for 2024. It is when we build a new fiscal framework for 2025 that we can take those taxes off.”

He noted that even with a new administration in place, the taxes remain because of prior financial commitments. Kojo Oppong Nkrumah outlined the importance of balancing tax cuts with expenditure reduction to prevent economic instability. “We programmed that we were going to cut expenditure by about 3% of GDP. Looking at GDP estimates for 2024, 1% of GDP was about 10 billion. So 3% of GDP is about 30 billion.”

He explained that while revenue cuts would amount to about 7 billion, the 30 billion reduction in expenditure would create a net positive balance for the economy. He criticized the opposition for making political gains out of tax cuts without a clear plan for compensatory spending reductions.

Wasteful Expenditure Debate

On the issue of wasteful expenditure, Kojo Oppong Nkrumah emphasized that subjective interpretations should not drive fiscal policy. He cited the KPMG pre-budget report, which advised the government to move beyond vague references to wasteful spending. “What KPMG, for example, advises the government to do is to be definite in a cut.”

He stressed the need for concrete action rather than rhetoric. “Dr. Bawumia was clear that we’re going to cut 3% of GDP. And so you can measure it and see it in the numbers.”

He urged a thorough analysis of expenditure figures rather than focusing on symbolic reductions. “If, for example, I have 80 ministers and it’s costing 100 million to run government machinery, and you have 60 ministers, and it’s costing 120 million, the numbers are exposing the fact that in rhetoric, you’ve told us you’ve reduced, but in terms of the cost… it’s gone up.”

Revenue Strategy and VAT Adjustments

Discussing the government’s revenue approach, Kojo Oppong Nkrumah expressed skepticism about plans to restructure the VAT system. “That is code language for they are going to introduce VAT on new areas.”

He explained that rather than creating entirely new taxes, the government might expand VAT coverage or increase existing rates. “Something that was 1%, they will move it to 3%. Something that did not affect, or VAT that didn’t affect a particular category of services, they will add it to it.”

Nkrumah cautioned that such measures could result in excessive taxation of productive sectors. He cited financial services as an example, where previous VAT impositions constrained growth. “If you reintroduce it, what you are doing is that you are reneging on your promise to reduce the levels of taxation.”

Nkrumah called for adherence to the agreed fiscal strategy. “We agreed we would cut the taxes. Cut them. Of course, it will have a 6 to 7 billion implication on the expenditures but cut those expenses. Don’t do what they call rationalization. Cut it.”

He stressed that the government’s initial goodwill period is the best time for decisive economic actions. He said without doing that people start getting disappointed because their expectations have not been fulfilled, this then makes it difficult to master the political will to make the tough decisions.

Gov’t announces plans to increase school feeding fee

By
Adwoa Afranewaa
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school feeding
school feeding

Finance Minister, Dr. Cassiel Ato Forson in a media engagement on X space with Kalyjay announced government plans to increase the school feeding grant to GHC 2.00 from the initial GHC 1.50. The social media engagement was held ahead of the 2025 budget presentation on March 11, 2025 to gather youth and media feedback.

Over the years, concerns has been raised by caterers, school heads and other education stakeholders over the insufficiency of the GHC 1.50 feeding fee for students for the school feeding program.

Following the announcement, The School Feeding Caterers Association has expressed support for the government’s decision to raise the feeding fee for basic school students from GHC 1.50 to GHC 2.00, recognizing it as a positive move, though still not enough.

Nana Otu Sakyi-Amo Twafohene, the National President of the Association, expressed gratitude for the increase and called for further enhancements.

“We say thank you to H.E John Dramani Mahama for listening to caterers. We have been crying for this increment for a long time. 2 cedis is not enough, but we will still manage it”, she stated.

The increment is set to take effect from the third term, beginning in April.

International Women’s Day: Prof. Naana Jane Opoku-Agyemang Calls for Action

By
Ivy Hollys
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jane naana opoku agyemang speaking on International Women's day

In celebrating International Women’s Day, Ghana’s Vice President, Prof. Naana Jane Opoku-Agyemang, has urged the nation to accelerate efforts toward gender equality as the country joins the world.

Speaking at the International Women’s Day Dialogue 2025 and later addressing the women of Ghana separately, she emphasized the need to break barriers that hinder women’s full participation in national development.

“We do not only recognize the profound contributions of women in every sphere of society, but we also affirm our commitment to breaking the barriers that have long hindered our full participation in the nation’s progress.“

Prof. Opoku-Agyemang highlighted the vital roles women play in various sectors, including business, governance, education, and healthcare. She stressed that women are the backbone of families, communities, and the economy.

“Our contributions to business, governance, education, healthcare, and the sciences are invaluable,” she said. “Whether in our markets, in the boardrooms, classrooms, farmlands, or on the beaches, women continue to drive innovation, nurture growth, and shape the future of our country.”

Government’s Commitment to Women’s Empowerment

The Vice President reaffirmed the government’s dedication to ensuring that women have the resources and support needed to excel. She cited key initiatives aimed at empowering women, including the Women’s Development Fund, which is set to provide financial support for female entrepreneurs.

“Some of the key initiatives include the establishment of the Women’s Development Fund to provide financial support to women entrepreneurs, ensuring that we have the capital and other forms of support to take action and expand our businesses,” she said.

She also mentioned affirmative action policies designed to increase the representation of women in leadership roles.

“Women still face challenges along all spheres of life, but with the increase in representation, we will hold the door for many women to pass through to achieve their full potential.”

Prof. Opoku-Agyemang called on all Ghanaians to support women in achieving their dreams, stating that gender equality is a national imperative.

“When women thrive, families, communities, [and] nations prosper. Let us accelerate action for our mothers, our daughters, our sisters, and for the future of our great nation,” she declared.

Addressing Menstrual Health to Support Girls’ Education

During the dialogue, Prof. Opoku-Agyemang addressed the impact of menstrual health on girls’ education, describing it as a critical issue that must be tackled.

“Now to think that the natural menstrual cycle of a girl poses a threat to her advancement in education is not acceptable,” she stated.

She recalled efforts made under former President John Dramani Mahama’s leadership to address the issue during her tenure as Minister of Education. Prof. Opoku-Agyemang announced that the supply of sanitary pads had been included in the government’s manifesto, with the Minister for Education, Hon. Haruna Idrisu, already taking action.

“We must empower girls in different and concrete ways,” she urged. “It is the girls who become the women. No one is born a woman. We are born girl children. It starts from there.”

Her call to action reinforces the country’s commitment to gender equality and the empowerment of women and girls.

Cyber Protection for Children: Cyberstalking, Sextortion, and All You Need to Know

By
Ivy Hollys
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cyber protection: cyber stalking, sextortion etc

Cyber protection for children has become a pressing concern as online threats such as cyberstalking and sextortion continue to rise. Experts warn that children are particularly vulnerable due to their increased internet use, especially after the COVID-19 pandemic.

Speaking on the issue, cybersecurity expert Adelaide Prempeh stated that children are operating under the threat of the online space. She mentioned that this was exacerbated by COVID. “During COVID, we all had to be tech-savvy, especially our children, because they needed to go to school,” she explained. 

What is Sextortion?

Prempeh explained that sextortion is a form of “terrorism against children” and occurs when perpetrators threaten to distribute sexually explicit images of minors unless demands are met. She noted that this form of extortion is normally initiated by a connection.

She elaborated on how online predators gain access to children, saying, “As we all know, when we have social media platforms, one will receive a friend request. You and I may be cynical and think, who’s this person? But children are more impressionable. They are that age where, should I say, hormones are raging.”

The Dangers of Sextortion and Cyber Grooming

Shedding more light on the dangers of cyber grooming and sexting, Nelson Herald Darko, senior manager of the child online protection department of the CSA. He described them as two common ways children fall victim to sextortion. Explaining cyber grooming, Darko highlighted that perpetrators often create fake accounts using attractive images to lure children. “There’s an old man sitting somewhere. This old man can be a relative, can be a community member, or can be a family member, or sit behind a computer, create a fake account, and use an attractive picture that will attract these children for interaction.”

He described how these predators manipulate children and solicit naked pictures and videos, and afterward, they blackmail the parents. This is because the children don’t have enough to pay them.

Sexting, another avenue for sextortion, occurs when children take and share sexually explicit images of themselves.

The Rising Cases of Sextortion

The issue of sextortion among young people is more widespread than official statistics suggest. The Cyber Security Authority reported 365 cases of sextortion in 2024. 

Herald referenced an international organization that tracks online crimes against children. “In 2020, they said that 13,000 sexual images of children and young people were accessed in Ghana. In 2022, it increased to 19,733. In 2022, it moved to 21,909. That is where we are right now,” he lamented. Adelaide emphasized that this problem persists partly due to a culture of silence in Ghana. 

Legal Protections Against Cyber Crimes

The Cybersecurity Act of 2020 (Act 1038) provides legal protections against cyber crimes, including sextortion and cyberstalking. The law criminalizes these offenses and imposes strict penalties on perpetrators.

Prempeh explained that predators gather information through social media posts. “Facebook, you post things. They know exactly where you are, where you live, where you go to school, [and] all that stuff. And it is basically geared towards finding out as much information as possible.”

According to the law, individuals found guilty of cyberstalking or sextortion face severe penalties, including a conviction with a term of imprisonment of not less than five years [and] no more than 15. 

The Way Forward: Parental Guidance and Awareness

Experts strongly advise parents to be more involved in their children’s online activities. Darko warned that West Africa is becoming a training ground for cyber predators. He warned of young children as early as 13 years old being trained for sexual assault tactics in parts of West Africa. They mentioned Ghana, they mentioned Cote d’Ivoire, and they mentioned Nigeria.”

He advised, “Normally I advise parents that if you want to buy a computer device for your child, you place it in a hall where you can easily monitor the supervisor.”

Prempeh urged parents to maintain open communication with their children. “Your children have done nothing wrong. It is not a crime. They have not committed a crime. Talk to your children more. Help them out,” she advised.

Cyber protection for children is no longer optional—it is a necessity. Sextortion, cyber grooming, and cyberstalking pose serious threats to young people. Parents, educators, and lawmakers must work together to protect children online. Increased awareness, strict legal measures, and open family discussions can help prevent these crimes and ensure a safer digital environment for children.

Ishmael Yamson Sounds Alarm: Ghana Must Avoid 18th IMF Bailout

By
Ivy Hollys
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Ishmael Yamson
Dr Ishmael Yamson

Ghana has sought support from the International Monetary Fund (IMF) 17 times in its 68-year history. Former Unilever Ghana boss Dr. Ishmael Yamson insists this pattern must stop.

Speaking to the media, Dr. Yamson warned against a feared 18th bailout. He urged Ghana to reset its economic course.

Reflecting on Ghana’s early promise, MTN Ghana Board Chairman Yamson recalled the nation’s post-independence pride. Dr Ishmael Yamson lamented its decline after Kwame Nkrumah’s overthrow.

“We were very proud to be Ghanaian after independence,” he said. “Every African identified as Ghanaian in London, and the British assumed the same.”

He remembered Tema’s vibrant industrial landscape during the 1960s. “Factories were running everywhere. Nkrumah set up nearly 400 vertically integrated manufacturing companies,” Yamson recalled.

Dr. Ishmael Yamson shared his personal experience of Ghana’s industrial success. “I bought my first Volkswagen, and the tyres came from Bonsa Tyre Factory. Raw materials were always nearby,” he said.

According to Ishmael Yamson, Ghana’s economic downturn began with the closure of state-owned enterprises after Nkrumah’s overthrow. “Once Nkrumah was removed, everything fell apart,” he noted.

He blamed Bretton Woods institutions for pushing the military government to close many factories. “They forced these closures, and we’ve paid the price,” he said.

While state-run businesses struggled, Yamson criticized the privatization process. “Divestiture wasn’t wrong, but we didn’t handle it well. Most of these enterprises died,” he explained.

He highlighted the inefficiency of today’s state-run businesses. “Only two state-owned enterprises make money; the rest serve political interests,” he argued.

Yamson expressed concern over Ghana’s dependence on external financial aid. “After 68 years, how can we go to the IMF 17 times? Let’s pray we avoid an 18th,” he said.

Despite the challenges, Yamson remained hopeful about Ghana’s future. “The situation is difficult, but not hopeless. If we implement the reset agenda, we won’t need the IMF again,” he finalised.

Jude Okoye Secures $67K Bail in Alleged $865K Fraud Case

By
Ivy Hollys
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jude okoye
jude okoye

Jude Okoye, the elder brother and former manager of the defunct music group P-Square, has been granted bail in the sum of N100 million ($67,000) by the Federal High Court in Ikoyi, Lagos. The court’s decision came ahead of Okoye’s trial for alleged fraud involving massive sums of money.

The Economic and Financial Crimes Commission (EFCC) arraigned Jude Okoye on charges of laundering N1.38 billion, $1 million, and £34,537.59. Okoye pleaded not guilty to the charges and was initially remanded in the Ikoyi Correctional Facility by Justice Alexander Owoeye.

Jude Okoye’s counsel, Inibehe Effiong, had requested that his client remain in EFCC custody instead of the correctional facility, but the prosecution counsel, Larry Peters Aso, strongly opposed the request. During Friday’s court session, the defence filed a bail application, which the prosecution countered with an affidavit arguing that Okoye posed a flight risk and could interfere with witnesses.

On Monday, Justice Alexander Owoeye ruled in favour of granting bail, setting stringent conditions. The court ordered Okoye to provide two sureties, each with landed property in Lagos worth N100 million. The court must verify the property documents, and Okoye cannot travel outside Nigeria without prior approval from the court.

Until Okoye meets the bail conditions, the court ruled that he would remain in custody. His trial is scheduled to begin on April 14, 2025.

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