The Institute of Statistical Social and Economic Research (ISSER) of the University of Ghana has described the 2025 budget and economic policy of the government as inspirational, highlighting several tax reliefs aimed at easing the burden on taxpayers.
In a review of the 2025 budget statement and economic policy of government, the Director of ISSER, Professor Peter Quartey, stated that the budget inspired hope, particularly through the removal of taxes such as the Electronic Levy, Betting Tax, and Emissions Levy, which are expected to benefit businesses and individuals.
Prof. Quartey commended the government for introducing the National Apprenticeship Programme to provide skills training for the youth, the Free Tertiary Education policy for Persons With Disabilities, and the establishment of the National Development Bank.
He, however, stressed the need for proper targeting and transparency in implementing these initiatives.
Prof. Quartey said ISSER supported the government’s decision to reintroduce road tolls, recommending that the implementation should rely on technology to reduce congestion at toll booths.
He emphasised that the necessary infrastructure should be in place before rolling out the policy.
Prof. Quartey advised the government to explore property rates as a potential source of revenue, noting that this area remains largely untapped.
On agriculture, he lauded government for the Agriculture for Economic Transformation Agenda (AETA), which aims to modernise agriculture and promote agribusiness.
He stressed the importance of improving water supply for crop production.
He recommended encouraging smaller, private-sector-led irrigation schemes while the public sector focuses on larger projects.
Prof. Quartey expressed concern over the government’s projected 4.2 per cent growth rate for 2025, arguing that it was too low given the 5.7 per cent growth rate recorded last year and the Sub-Saharan average of 4.2 per cent.
He suggested that the modest target might reflect the delayed implementation of the government’s 24-Hour Economy policy.
“It is unlikely that we will see immediate benefits from the 24-Hour Economy policy because the necessary structures are yet to be established,” he noted.
Touching on global issues, Prof. Quartey warned that geopolitical tensions could impact Ghana’s economy, citing the withdrawal of the United States Agency for International Development (USAID) as a potential challenge.
Dr Nana Amma Asante-Poku of ISSER, in her welcome address, highlighted the importance of the budget as a key policy document that affects essential services like education and health, as well as consumption and taxation.
She stated that the purpose of the review was to provide a non-partisan assessment of the budget’s successes and challenges.
The review was conducted by a team of 14 researchers from ISSER.
BY KINGSLEY ASARE
