2025 Budget: Allocations to various sectors/programmes

On March 11, 2025, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, delivered the highly anticipated 2025 Budget and Fiscal Policy to parliament, outlining key allocations aimed at addressing critical areas of development. The budget for 2025 includes significant investments in education, health, infrastructure, and social welfare.

Below are some of the key allocations:

1. GH¢13.85 Billion: Allocation for the Big Push Programme

The government has earmarked GH¢13.85 billion for the Big Push Programme, a flagship initiative designed to accelerate infrastructural development and drive economic growth. This ambitious allocation aims to stimulate job creation, enhance urbanization, and improve the quality of life for Ghanaians, with a particular focus on boosting sectors such as housing, energy, and transportation.

2. GH¢499.8 Million: Allocation for No-Academic-Fee Policy for First-Year Students in Public Tertiary Institutions

In a move to ease the financial burden on students and their families, the government has allocated GH¢499.8 million for the No-Academic-Fee policy, which will cover the cost of tuition fees for all first-year students in public tertiary institutions. This policy is expected to increase access to higher education and contribute to a more educated and skilled workforce.

3. GH¢292.4 Million: Allocation for Distribution of Free Sanitary Pads to Female Students

With a focus on improving education for girls, the government has allocated GH¢292.4 million for the distribution of free sanitary pads to female students in primary and secondary schools. This initiative is aimed at ensuring that girls can stay in school during their menstrual periods, thereby promoting gender equality in education.

4. GH¢242.5 Million: Allocation to Support Victims of the Akosombo Dam Spillage

In light of the recent disaster caused by the Akosombo Dam spillage, the government has allocated GH¢242.5 million to assist the victims of the tragedy. The funds will be used for relief efforts, including providing immediate support, resettling displaced families, and funding long-term recovery projects.

5. GH¢200 Million: Allocation to Support Victims of the Tidal Wave Disaster in Ketu South

The tidal wave disaster in the Ketu South constituency left many people displaced, prompting the government to allocate GH¢200 million for relief and rehabilitation efforts. This funding will assist affected families, help rebuild damaged infrastructure, and provide support for long-term recovery in the region.

6. GH¢3.5 Billion: Allocation for the Free Secondary Education Programme

The free secondary education programme remains a top priority, with GH¢3.5 billion allocated to ensure that all students have access to quality secondary education. This funding will cover tuition, textbooks, and other educational resources, continuing the government’s commitment to improving education outcomes for young people.

7. GH¢564.6 Million: Allocation for Comprehensive Provision of Free Curricula-Based Textbooks

To enhance the quality of education, GH¢564.6 million has been set aside for the provision of free curricula-based textbooks to students in primary and secondary schools. This initiative aims to support learning by ensuring that students have access to the necessary educational materials.

8. GH¢1.788 Billion: Allocation for the School Feeding Programme

The School Feeding Programme receives a substantial allocation of GH¢1.788 billion. This initiative seeks to provide nutritious meals to students in public schools, thereby improving attendance rates, concentration, and overall academic performance, particularly among students from low-income backgrounds.

9. GH¢145.5 Million: Allocation for the Capitation Grant

To support basic education, the government has allocated GH¢145.5 million for the Capitation Grant. This funding will ensure that public schools continue to receive financial support for operational costs, helping improve the quality of education at the grassroots level.

10. GH¢203 Million: Allocation for the Payment of Teacher Trainee Allowances

Teacher training is crucial to improving the quality of education in Ghana, and the government has allocated GH¢203 million for the payment of allowances to teacher trainees. This will ensure that trainee teachers receive the necessary support while pursuing their qualifications.

11. GH¢480 Million: Allocation for the Payment of Nursing Trainee Allowances

In addition to teachers, the government has allocated GH¢480 million for the payment of allowances to nursing trainees. This is part of the government’s ongoing efforts to support and incentivize the training of health professionals, ensuring that Ghana’s healthcare system remains strong and well-equipped.

12. GH¢9.93 Billion: Allocation for the National Health Insurance Scheme (NHIS)

The National Health Insurance Scheme (NHIS) is a cornerstone of Ghana’s healthcare system. The government has allocated GH¢9.93 billion to ensure that the NHIS continues to provide affordable and accessible healthcare services to Ghanaians. This funding will also support the expansion of services and improve the efficiency of the scheme.

13. GH¢2.81 Billion: Allocation for the Ghana Road Fund

To improve infrastructure and road networks across the country, the government has allocated GH¢2.81 billion for the Ghana Road Fund. This funding will be used for the construction, rehabilitation, and maintenance of roads, which are critical to economic growth and mobility.

14. GH¢7.51 Billion: Allocation for the District Assembly Common Fund (DACF)

The government has allocated GH¢7.51 billion to the District Assembly Common Fund (DACF), which is designed to support local governance and development. The fund will be distributed to district assemblies to finance local projects and improve living standards in communities.

15. GH¢1.5 Billion: Allocation for Agriculture for Economic Transformation Agenda (AETA)

With a focus on transforming the agricultural sector, the government has allocated GH¢1.5 billion for the Agriculture for Economic Transformation Agenda (AETA). This funding will support initiatives aimed at modernizing agriculture, improving food security, and increasing export opportunities.

16. GH¢51.3 Million: Allocation as Seed Fund for the Establishment of the Women’s Development Bank

To empower women and support entrepreneurship, the government has allocated GH¢51.3 million as a seed fund for the establishment of the Women’s Development Bank. This initiative aims to provide financial support to women-owned businesses and create opportunities for women to thrive economically.

17. GH¢300 Million: Allocation for the National Apprenticeship Programme

In a bid to tackle youth unemployment, the government has allocated GH¢300 million for the National Apprenticeship Programme. This funding will provide training and skill development for young people, equipping them with the tools needed to succeed in various trades and industries.

18. GH¢100 Million: Allocation for the ‘Adwumawura’ Programme

The ‘Adwumawura’ Programme, designed to support small and medium-sized enterprises (SMEs), will receive a significant allocation of GH¢100 million. This funding will help create jobs, promote entrepreneurship, and provide financial assistance to local businesses.

19. GH¢100 Million: Allocation for the National Coders Programme

Finally, the government has allocated GH¢100 million for the National Coders Programme, which aims to foster digital skills development among the youth. This initiative is crucial for positioning Ghana as a leader in the global digital economy and creating opportunities for young people in the technology sector.

Conclusion

The 2025 Budget reflects the government’s continued commitment to investing in key sectors that are vital for the development of the country. With allocations targeting education, healthcare, infrastructure, and economic transformation, the government aims to improve the quality of life for all Ghanaians while ensuring sustainable economic growth.

2025 Budget: Govt Scraps 5 Taxes

In a groundbreaking announcement, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, unveiled key revenue measures as part of the country’s 2025 Budget. As part of the government’s commitment to reducing the financial strain on citizens and businesses, Dr. Forson revealed the scrapping of five nuisance taxes. This strategic move is in line with the government’s manifesto promises, aiming to improve disposable incomes, boost business growth, and enhance tax compliance across the nation.

The Scrapping of Five Nuisance Taxes

The Finance Minister outlined the five specific taxes that will be removed, which had previously been seen as burdensome to various sectors of the economy. These taxes, which disproportionately affected households and businesses, are:

1. 10% Withholding Tax on Lottery Winnings (Betting Tax): This tax, which had previously applied to winnings from lottery and other betting activities, will now be abolished to encourage more participation and growth in the gaming sector.

2. 1% Electronic Transfer Levy (E-Levy):

The controversial E-Levy, which had been a significant point of contention among the public, will be completely scrapped. This tax had imposed a financial burden on digital transactions, particularly among the less wealthy segments of society.

3. Emission Levy on Industries and Vehicles: The government will no longer impose an additional emission levy on industries and vehicles. This decision comes amid growing concerns over the impact of such taxes on businesses and the automotive sector.

4. VAT on Motor Vehicle Insurance Policies: The Value Added Tax (VAT) on motor vehicle insurance policies will also be removed, providing relief to car owners who have been burdened by the extra cost of insuring their vehicles.

5. 1.5% Withholding Tax on Unprocessed Gold Winnings by Small-Scale Miners: Small-scale miners, who are a key part of Ghana’s gold industry, will no longer face the 1.5% withholding tax on their unprocessed gold winnings, offering them greater financial freedom to reinvest in their businesses.

Dr. Forson explained that while the government remains focused on increasing non-oil tax revenue by 0.6 percentage points of GDP under the IMF-supported programme, the scrapping of these taxes will provide significant economic relief and stimulate growth.

Government’s Commitment to Reducing Financial Burdens

The removal of these taxes is an important aspect of the government’s broader strategy to reduce the financial burdens on Ghanaian citizens and businesses. According to Dr. Forson, this initiative is a direct response to calls from the public for relief from taxes that had hindered disposable incomes and discouraged business growth.

By eliminating these taxes, the government aims to not only improve the economic standing of ordinary citizens but also create a more conducive environment for businesses to thrive and invest in the local economy. The focus will now be on improving tax compliance and ensuring that businesses and citizens have the means to contribute to national revenue without facing undue hardship.

Addressing Misuse of the Tax Refund Account

In a related development, Dr. Forson also highlighted the misuse of the Tax Refund Account, a critical aspect of the country’s financial management system. Over the past eight years, a staggering GHS16.6 billion, which represents 57% of the funds in the account, was misapplied. This violation of both the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921) has raised serious concerns about the integrity of the system.

To prevent further misuse, the government has decided to reduce the tax refund ceiling from 6% to 4% of total revenue, as stipulated under Section 69 of the Revenue Administration Act. This adjustment is intended to tighten financial controls and ensure that tax refunds are properly managed and allocated.

A Step Towards Economic Growth and Stability

The measures announced by Dr. Forson are seen as a bold step towards enhancing the financial wellbeing of Ghanaian citizens and improving the overall business climate in the country. By scrapping these five taxes, the government aims to bolster economic activity, increase disposable incomes, and create a more tax-compliant society. With these steps, Ghana is poised to enter a new era of financial stability, marked by greater transparency, fairness, and prosperity for all citizens.

Read the full budget statement

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