Ghana Grapples with Economic Realities as Finance Minister Presents Mid-Year Budget Review

Published in Business and Finance on Wednesday, August 20th 2025 at 10:09 GMT by Ghanaweb.com
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Ghana’s economic landscape remains under intense scrutiny as Finance Minister Ken Okyere-Domebrew prepares to deliver his 2025 Mid-Year Budget Review today. The presentation, scheduled for Parliament, will offer a critical assessment of the government's performance against previously set targets and outline adjustments needed to navigate ongoing challenges. This review comes at a time when Ghanaians are keenly aware of the pressures on their livelihoods, fueled by inflation, debt restructuring efforts, and fluctuating exchange rates.

The anticipation surrounding this budget is palpable, particularly given the recent International Monetary Fund (IMF) assessment and the lingering effects of the 2022 economic crisis. The government secured a $3 billion Extended Credit Facility (ECF) from the IMF in May 2023 as part of a broader strategy to stabilize the economy and restore debt sustainability. This program, however, has necessitated stringent fiscal measures, including tax hikes and expenditure cuts, which have been met with considerable public discontent.

The mid-year review is expected to shed light on progress made towards meeting key performance indicators (KPIs) outlined in the IMF agreement. These include targets for revenue mobilization, debt reduction, inflation control, and exchange rate stability. While initial reports suggested some positive trends – particularly regarding a decrease in inflation from its peak of 54% in December 2022 to around 25% currently – concerns remain about the pace of economic recovery and the impact on vulnerable populations.

One of the most pressing issues facing Ghana is the ongoing debt restructuring process. The government has been engaged in negotiations with both domestic and external creditors to alleviate its unsustainable debt burden, which stood at over $55 billion as of 2023. A successful outcome to these negotiations is crucial for restoring investor confidence and unlocking further financing opportunities. However, delays and disagreements have created uncertainty and hampered the country's ability to access international capital markets. The Finance Minister’s statement will likely address the current status of these negotiations and outline strategies for achieving a resolution.

Furthermore, the review is expected to detail measures being taken to boost revenue generation. The government has implemented several tax reforms in recent months, including increases in Value Added Tax (VAT) and levies on certain goods and services. While these measures are intended to increase government revenues, they have also been criticized for exacerbating the cost of living crisis. The Finance Minister may be pressured to provide clarity on whether further tax hikes are planned or if alternative revenue-generating strategies are being explored.

Beyond the immediate economic challenges, the budget review will likely address broader issues such as job creation, infrastructure development, and social protection programs. The government has pledged to prioritize initiatives that support small and medium-sized enterprises (SMEs), which are vital for employment generation. Investments in critical infrastructure projects, particularly those aimed at improving transportation and energy access, are also expected to be highlighted.

The presentation will also provide an opportunity for the Finance Minister to respond to criticisms leveled against the government’s economic policies. Opposition parties and civil society organizations have consistently questioned the effectiveness of the IMF program and its impact on ordinary Ghanaians. The mid-year review offers a platform for the government to defend its actions, address concerns, and outline plans for future reforms.

The success of this budget review hinges not only on the numbers presented but also on the credibility and transparency with which they are communicated. Ghanaians are demanding accountability and tangible evidence that the government is working effectively to alleviate their economic hardships. The Finance Minister’s ability to articulate a clear vision for the future, coupled with concrete actions to address pressing challenges, will be crucial in restoring confidence and fostering sustainable economic growth. Ultimately, the 2025 Mid-Year Budget Review represents a critical moment for Ghana's economic recovery and its journey towards long-term stability.

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Ghana Grapples with Economic Realities as Finance Minister Presents Mid-Year Budget Review