On March 11, 2025, Finance Minister Dr. Cassiel Ato Forson presented the national budget for the year. While many reports focus on taxes and government debt, there are other important aspects of the budget that affect the everyday lives of Ghanaians. This article breaks down the key areas that matter most such as roads, jobs, farming, and taxes in a way that everyone can understand.
1. More Money for Roads, Schools, and Hospitals
The government is setting aside GH¢13.85 billion to improve infrastructure, including roads, hospitals, and schools. This means that unfinished projects, such as the expansion of the Accra-Kumasi Highway and key interchanges in major cities, will now be completed. Better roads will make it easier and cheaper to transport goods, while more hospitals and schools will improve access to healthcare and education.
2. Controlling Spending to Protect the Economy
Ghana has been struggling with rising debt, so the government is taking steps to reduce unnecessary spending and increase savings. One major goal is to reduce the country’s budget deficit (the gap between what we spend and what we earn) from -3.5% in 2024 to -2.7% in 2025. This is important because spending more than we earn can weaken the economy and lead to a rise in prices. However, Ghana will resume paying off its external debts (loans borrowed from foreign countries and institutions) after a two-year break. This could put pressure on the country’s finances, so the government must manage money wisely to avoid future economic problems.
3. Helping Cocoa Farmers and the Agriculture Sector
Cocoa is one of Ghana’s biggest exports, but farmers have been struggling with low earnings and challenges like illegal mining (galamsey), which is destroying farmland. The budget acknowledges these problems and suggests:
Paying cocoa farmers better prices to encourage more production.
Ending expensive loan programs that do not help farmers in the long run.
Fighting illegal mining to protect cocoa farms and the environment.
Cutting unnecessary expenses at COCOBOD (the organization that oversees Ghana’s cocoa sector).
If these measures work, cocoa farmers will earn more, and the economy will benefit.
4. Tax Changes and Business Support
Business owners, especially traders, have long complained about high taxes and import duties. In this budget, the government promises to review and possibly reduce certain taxes to make it easier for businesses to operate. However, since lower taxes mean the government will collect less money, officials are also working on better tax collection methods to ensure that everyone pays their fair share. This will help the country raise enough money for development without overburdening businesses.
What This Budget Means for You
Expect to see better roads, schools, and hospitals.
The government will try to control spending, but repaying foreign loans may be tough.
Cocoa farmers could get better prices, but illegal mining remains a threat.
Businesses may get some tax relief, but the government will work harder to collect taxes fairly.
If properly implemented, this budget could help Ghana recover financially, improve infrastructure, and create a more stable economy for everyone.
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