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Parliament will today become the epicentre of national attention as Finance Minister Dr Cassiel Ato Forson delivers the much-anticipated 2025 Mid-Year Budget Review — a fiscal update that comes at a time of promising economic rebound but growing public expectation.
The key question for many observers is whether the government will stay within its original GH¢226.7 billion expenditure envelope or seek parliamentary approval for a supplementary budget to accommodate new fiscal and political realities.
Ghana’s economic fundamentals appear to be strengthening. Inflation, which opened the year at 23.5%, has sharply declined to 13.7% by the end of June. Analysts now believe the country could close the year with single-digit inflation, surpassing the government’s original target of 11.9%.
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On the currency front, the Ghana cedi has staged a significant recovery, appreciating from GH¢15 to the dollar in January to around GH¢10.45 as of July. This 42.6% gain, driven by strong remittance inflows, higher gold and cocoa earnings, and renewed investor interest, is beginning to reflect in stable pricing in retail outlets.
Gross international reserves have also surged, rising from US$8.98 billion in December 2024 to US$11.1 billion as of June 2025 — enough to cover 4.8 months of imports, well above the country’s 3-month buffer target.
On the revenue side, the government’s decision to abolish the controversial betting tax has been widely welcomed. However, the recent introduction of a GH¢1 fuel levy has sparked debate and public discontent, with many awaiting clarity today on whether the levy is temporary or here to stay.
Meanwhile, Parliament’s Subsidiary Legislation Committee has hinted at an impending 30–40% increase in statutory fees to boost domestic revenue mobilisation — a proposal likely to dominate post-budget discussions.
Economic growth has also outperformed expectations. While the original 2025 GDP growth target stood at 4.4%, provisional data from the Ghana Statistical Service points to a robust 5.3% expansion in the first quarter. This could pave the way for a revised outlook, possibly aligning with the broader recovery targets under Ghana’s IMF-supported programme.
Despite the encouraging metrics, economists are cautioning against fiscal complacency. With critical infrastructure projects and social interventions looming in the second half of the year, calls are mounting for the government to maintain discipline and credibility in its policy choices.
As Dr Ato Forson prepares to address Parliament, stakeholders across business, civil society, and international development circles will be watching closely for signals that the government remains committed to stabilising the economy while safeguarding growth.
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