Former Finance Minister Amin Adam has questioned the credibility of the 2025 budget presented by Cassiel Ato Forson, arguing that the figures do not reflect the true state of the Ghanaian economy. He accused the current administration of manipulating economic data to create a negative perception of the country’s financial health.
According to him, if the government removed the GH¢49.2 billion they included in the fiscal framework, the overall fiscal deficit would stand at 3.4% rather than the 7.6% announced. Similarly, the primary balance would be 0.6% instead of the 3.1% deficit the minister claimed. Adam insisted that these figures would have demonstrated a stronger performance of the Ghanaian economy, aligning with the targets set in the 2024 budget and the IMF benchmarks for the upcoming review in April.
“Sadly, if you decided to take away the GH¢49.2 billion cities they put in the fiscal framework, the overall fiscal deficit will be 3.4 percent, not the 7.6 percent the minister announced. And the primary balance will be 0.6 percent, not the deficit 3.1 percent the minister announced,” he noted.
Amin Adam expressed concern over the repercussions of the budget’s inaccuracies on Ghana’s international standing. He warned that the international markets would react unfavorably, potentially leading to severe financial consequences if the IMF review failed due to manipulated data.
“I am wondering how well the international markets would have responded to the budget if an accurate picture was put out. Ghana is the loser. A big opportunity missed because of unhealthy politics.”
“In the event that the IMF review fails because of this manipulated data, which is by the government, the international markets would even react violently towards Ghana,” he warned.
He recalled a past instance where Ghana was fined $39 million for misreporting economic data to the IMF under former President Rawlings and cautioned that the country was at risk of repeating history under the current NDC government.
Economic Performance Under the NPP Government
Adam highlighted the strong economic indicators inherited by the NDC government, emphasizing that key metrics such as the debt-to-GDP ratio and GDP growth rate demonstrated a healthy Ghanaian economy.
“The debt-to-GDP ratio of 61.8% as I mentioned earlier, achieved in 2024, was not by accident. It was due to special precision and the implementation of a good debt strategy,” he stated.
He also pointed to the Ghana Statistical Service’s announcement of a 5.7% real GDP growth rate for 2024, the highest in five years, exceeding both the budget target of 3.1% and the revised target of 4%. He credited this growth to industry performance, with the construction sub-sector growing by 9.6%, surpassing mining growth at 9.4%.
Criticism of 24-Hour Economy Initiative
Adam also took aim at the NDC’s much-publicized 24-hour economy initiative, questioning its potential to drive economic growth. He pointed out that the budget projected an industry growth rate of only 5% between 2025 and 2027, which, according to him, was insufficient to support the initiative’s objectives.
“And if the 24-hour economy is actually going to work, we expect growth from industry, in particular, to be higher than this. And so, if you compare this with the industry growth of 7.1% in 2024, then you wonder what would be the benefit of the 24-hour economy if industry does not reach the heights of the previous NPP government,” he argued.
He further noted that the budget did not outline any concrete programs for the initiative, raising doubts about its implementation timeline. “If it is not in the 2025 economic policy budget statement, then it is not for 2025. It means no money is devoted for it. So, Ghanaians will have to wait, at least, until 2026 if we are lucky to have any hope of seeing how this campaign slogan translates into jobs.”
Amin Adam maintained that the NPP government had laid a strong economic foundation, which the NDC was failing to build upon. He urged the Minister for Finance to exercise caution in presenting economic data to ensure transparency and credibility.
“We wish to advise the Minister for Finance to tread cautiously,” he concluded.
With Ghana’s economic performance under scrutiny, the accuracy of government data remains a crucial factor in determining investor confidence and policy direction.
