Ghana’s Budget for 2025: Important Measures for Economic Change.
To promote economic transformation, increase job creation, and stabilize the economy, the government has launched a number of policy initiatives.
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In his presentation of the government’s 2025 Budget and Economic Policy Statement to Parliament yesterday, Finance Minister Dr. Cassiel Ato Forson listed several important initiatives, such as the establishment of a Ghana Gold Board (GOLDBOD), the implementation of the $10 billion “Big Push” infrastructure program, the introduction of a 24-hour economy, and the start of a Ghana Labour Export Program to formalise labour migration.
24-Hour Economy
The 24-Hour Economy policy would enable businesses and institutions to operate around the clock in three shifts to increase productivity and create well-paying jobs, according to Dr. Forson, who made the statement on behalf of the President in accordance with Article 180 of the 1992 Constitution, the Public Financial Management Act, 2016 (Act 921), and Standing Order 145 of Parliament.
He promised that Parliament would eventually be supplied with the entire policy for review.
In light of this, Dr. Forson stated that the GIPC Act of 2013 (Act 865), the Labour Act of 2003 (Act 651), and other supporting laws would be examined.
Gold Board of Ghana (GOLDBOD)
In order to increase foreign exchange reserves, Dr. Forson also announced the creation of the Ghana Gold Board (GOLDBOD), which will oversee the production, refinement, and sale of gold.
He claimed that in order to strengthen our foreign reserves, the GOLDBOD will implement a swift economic recovery program that would stabilise the macroeconomy and local currency.
Additionally, he said, “it will implement an Economic Transformation Agenda anchored by structural reforms anchored on promoting modernised agriculture, agri-business, and value addition for import substitution, exports, and job creation, as well as develop a deliberate policy to build economic buffers through external reserves to cushion the Ghana cedi.”
He went on to say that the Agriculture for Economic Transformation Agenda (AETA), which is based on the 24-Hour Economy program, would lower food inflation.
According to him, a $279 million revolving fund has been set aside to support the GOLDBOD program, which aims to buy and export at least three tonnes of gold every week from small-scale miners.
Ghana’s Labour Export Initiative
The Finance Minister suggested the Ghana manpower Export Programme, which would formally export Ghanaian manpower to outside markets, as a solution to the country’s unemployment problem and to curb illegal migration.
Perpetual Ofori-Ampofo, the president of the Ghana Registered Nurses and Midwives Association (GRNMA), revealed just a year ago that since August 2023, over 6,000 nurses have departed the nation in search of better possibilities.
According to Dr. Forson, the Ghana Labour Export program would aim to maximise remittances and foreign money inflows while establishing safer and legal avenues for Ghanaian workers working outside.
Agriculture-related investments
Additionally, the Finance Minister suggested giving GH¢1.5 billion to the Agriculture for Economic Transformation Agenda (AETA) in order to fund initiatives like the Vegetable Development Project, the Ghana Grains Development Project, and the Feed Ghana Program.
According to Dr. Forson, the government has set aside GH¢300 million for the National Apprenticeship Program, GH¢100 million for the “Adwumawura” Program, and an additional GH¢100 million for the National Coders Program to increase training in digital skills in order to improve youth employability.
DACF
He added that GH¢7.51 billion had been allotted to the District Assemblies Common Fund (DACF), one of the designated monies that had been capped under the Earmarked monies Capping and Realignment Act, 2017 (Act 947).
Act 947 did not work as intended because it deprived the funds of necessary resources. Its purpose was to allow the Minister of Finance to allocate public resources at his or her discretion by allowing just 25% of revenue to be deposited into designated funds.
In order to promote economic growth, the Finance Minister suggested that at least 80% of the monies be transferred straight to the DACF in line with the goal of the decentralisation program.
“Mr. Speaker, it’s important to note that this is a sharp contrast to what has happened to the DACF in recent years, where a large portion of the released amount goes to the centre and less than 50% goes to the district assemblies,” Dr. Forson said.
Additionally, he stated that GH¢100 million had been set aside for the first time to provide monthly allowances to every assembly member, acknowledging their contribution to community development and local administration.
Bank for Women’s Development
The Finance Minister revealed that the government had contributed GH¢51.3 million as a seed investment for the formation of the Women’s Development Bank, a key campaign pledge of the National Democratic Congress (NDC), which will offer focused financial assistance for female entrepreneurs.
The government is attempting to sign a memorandum of agreement with multilateral development institutions, such as the World Bank, the European Investment Bank (EIB), the African Development Bank (AfDB), and KfW, for patient capital for the bank. The establishment of the Development Bank Ghana was proposed in the 2020 and 2021 budgets.
In an effort to enhance road infrastructure, he stated that the uncapping of the designated monies will have an impact on the Ghana Road Fund. Accordingly, GH¢2.81 billion was allocated for road maintenance, which is a 155.5 percent increase over the GH¢1.1 billion allocated in 2024.
