Ghana’s economic direction is under scrutiny, with businesses and analysts eager to understand how the government’s budget will shape the year ahead. Deloitte’s latest assessment of the 2025 Budget titled: “2025 Government Budget and Economic Policy | Summary of Budget Statement & Deloitte Views” sheds light on key fiscal strategies, potential risks, and opportunities that could define the economic landscape.
The report highlights key areas of progress, risks, and recommendations that could shape economic performance and business operations in the coming year.
Economic Growth and Fiscal Discipline
Deloitte acknowledges the government’s efforts to stabilize the economy, particularly the plan to reduce the budget deficit from 7.9% in 2024 to 3.1% in 2025. The budget’s fiscal tightening measures align with International Monetary Fund (IMF) conditions, reinforcing Ghana’s commitment to economic discipline.
However, Deloitte warns that this level of consolidation could slow down business activity and investment if not balanced with growth-friendly policies. Ghana’s 4.0% GDP growth projection for 2025, down from 5.7% in 2024, reflects this cautious approach.
Revenue Mobilization and Tax Policy Changes
One of the most notable shifts in the 2025 Budget is the abolition of E-Levy, Betting Tax, and Emissions Levy, which Deloitte sees as a positive move for businesses and consumers. However, these tax cuts create a revenue gap that must be filled to maintain fiscal stability.
Deloitte recommends expanding the tax base, especially within the informal sector, and enhancing tax compliance to offset potential shortfalls. The firm also raises concerns about the increase in the Growth and Sustainability Levy for mining companies from 1% to 3%, which could deter investment in the sector.
Debt Sustainability and Public Financial Management
Ghana’s public debt declined from 68.7% of GDP in 2023 to 61.8% in 2024, a development Deloitte credits to the ongoing debt restructuring program. The government’s plan to reopen the domestic bond market is seen as a positive step toward debt sustainability, but Deloitte stresses the need for strict discipline in borrowing and spending to prevent another debt crisis. The reintroduction of the Fiscal Responsibility Act is welcomed, as it aims to curb excessive expenditure.
Energy Sector Challenges and Infrastructure Development
Deloitte identifies the GH¢145.8 billion financing shortfall in the energy sector as one of the biggest risks to Ghana’s economic stability. Rising debts to Independent Power Producers (IPPs) threaten the country’s electricity supply, and the firm urges the government to renegotiate power purchase agreements and restructure sector levies.
The $10 billion “Big Push” infrastructure initiative is seen as a necessary intervention to close Ghana’s $45 billion infrastructure gap by 2040, but Deloitte warns that without strong financial oversight, these investments could be mismanaged.
Business Outlook and Key Recommendations
For the business community, Deloitte sees opportunities in the government’s commitment to reducing inflation, improving revenue collection efficiency, and enhancing infrastructure development.
However, companies should prepare for potential economic slowdowns due to fiscal tightening. Deloitte emphasizes the need for policy consistency, private sector engagement, and improved ease of doing business to sustain long-term growth.
