Despite signs of recovery for Ghana’s economy in 2024, Deloitte emphasizes the necessity for structural adjustments to achieve sustainable growth. Key proposals within the 2025 Budget include tax reforms and initiatives like the 24-Hour economy policy aimed at job creation. The focus on improving macroeconomic indicators and ensuring debt sustainability is crucial moving forward.
Ghana’s economy exhibits signs of recovery in 2024; however, structural adjustments are necessary for sustainable growth and manageable debt levels, as stated by Deloitte. The firm emphasized that the government’s 2025 Budget Statement includes domestic revenue mobilization efforts and expenditure rationalization aimed at stabilizing economic conditions and enhancing macroeconomic performance.
A pivotal element of the proposed 2025 Budget Statement is the removal of several taxes alongside a planned reform of the Value Added Tax (VAT) system. Deloitte expressed optimism about the anticipated VAT reform, indicating it would be positively received by the business community and is eagerly awaited within the current calendar year. The business sector also anticipates the realignment of import duties on production inputs to facilitate economic growth and job creation.
Furthermore, Deloitte expressed anticipation regarding detailed plans for the 24-Hour economy initiative, leveraging government procurement to stimulate local growth, and the ambitious “Big Push” infrastructure development program, which aims to allocate US$10 billion toward infrastructural advancements. The firm acknowledged the economic challenges Ghana has faced recently, primarily due to the IMF Extended Credit Facility program aimed at restoring macroeconomic stability.
In reference to the government’s commitments, Deloitte is awaiting more information on the 24-Hour economy policy, introduced by the Mahama administration during the 2025 Budget Statement presentation. Dr. Forson highlighted the policy’s potential to generate employment and promote growth, affirming the NDC government’s dedication to this initiative.
Deloitte also pointed out the existing legal framework for fiscal responsibility and expressed hope for stricter regulations to ensure debt sustainability, particularly concerning the energy sector’s current debt levels. The firm reaffirmed its commitment to impacting the economic landscape positively while providing essential insights to clients, the public, and society regarding significant economic developments and their implications.
In summary, Deloitte indicates that while Ghana’s economy is showing recovery signs, critical structural adjustments must be implemented for sustainability. The 2025 Budget Statement outlines significant measures, including tax reforms and a focus on the 24-Hour economy policy. The anticipation of specific strategies aimed at fostering local growth and managing debt levels underscores the government’s role in stabilizing the economy for future prosperity.
Original Source: 3news.com
