Dr. Mohammed Amin Adam
Former Finance Minister, Dr. Mohammed Amin Adam, has raised serious concerns over the credibility of the 2025 Budget, citing the use of unaudited figures and its potential negative impact on Ghana’s economy.
Speaking in Parliament, Dr. Adam questioned the rationale behind the Finance Minister’s decision to base fiscal balances on figures yet to be audited, a move he described as improper economic management.
Dr. Adam emphasised that relying on unaudited data has already caused financial losses, noting that Ghana’s sovereign bonds have suffered declines in value.
According to him, the cost of borrowing has risen significantly, with Ghana’s sovereign bond spreads increasing from 500 to 700 basis points within three months.
He further pointed out that Ghana’s dollar bonds maturing in 2035 declined by 1.8%, while those maturing in 2029 dropped by 1% following the budget presentation.
He criticised the Finance Minister for publicly declaring that Ghana had breached its International Monetary Fund (IMF) programme, even though the IMF’s review is scheduled for April 2025.
Dr. Adam expressed shock at the declaration, arguing that such statements erode investor confidence and have forced the government to consider applying for waivers to mitigate the fallout.
Highlighting the country’s dependence on external financial support, he noted that the budget projects $720 million from the IMF and $600 million from the World Bank.
However, he warned that the benefits of previous debt negotiations, including $4 billion in ultra-debt cancellation and $7.5 billion in debt service relief, could be lost due to the government’s missteps.
Dr. Adam also scrutinised the revenue projections in the budget, questioning the feasibility of achieving a projected nominal revenue growth of GH¢38 billion in 2025, compared to GH¢8 billion in 2024.
He argued that the revenue measures outlined are weak and primarily compliance-based, making their quantification uncertain.
Concluding his remarks, Dr. Adam asserted that the 2025 Budget lacks credibility, does not add up, and will fail to deliver on promises of job creation and economic growth.
He cautioned that the burden of these economic missteps will ultimately fall on ordinary Ghanaians, who had entrusted the government to address the country’s financial challenges.
His comments have sparked further debate over the government’s economic strategy, with stakeholders keenly watching how the administration navigates its fiscal policy in the months ahead.
Isaac Adongo
A member of the Majority, Isaac Adongo, who is the Member of Parliament (MP) for Bolgatanga Central, launched a scathing critique of the previous government’s approach to taxation, economic policies, and public spending, arguing that excessive taxation and mismanagement have placed a heavy burden on Ghanaians.
The National Democratic Congress (NDC) MP accused the former administration of imposing taxes on every possible excuse, citing examples such as the “sanitation tax” and the “COVID-19 tax.”
He sarcastically remarked that Ghanaians were fortunate not to be taxed for global events like deportations from the United States or trade conflicts, stating, “By now, we would have been hearing a ‘Tariff Levy’ because our economy is suffering from Donald Trump.”
Turning his attention to the Gold-for-Oil programme, Mr. Adongo slammed the policy, arguing that it placed undue financial risk on the Bank of Ghana.
He claimed that price fluctuations and exchange rate instabilities led to severe financial losses for the central bank.
“The Bank of Ghana has now accumulated a deficit of GH¢73 billion,” he said, insisting that the current government would put an end to such unsustainable policies.
On the education sector, the NDC MP criticised the past government’s approach, specifically its decision to provide students with past examination questions rather than textbooks.
“Our children were learning past questions just to pass and forget,” he remarked, arguing that the current administration’s focus on critical learning materials would yield better long-term results.
Isaac Adongo also took issue with the previous government’s handling of the Ghana Education Trust Fund (GETFund), alleging that funds meant for schools were redirected to projects like the National Cathedral and luxury presidential travel.
He accused the past administration of centralising GETFund resources while students suffered overcrowded conditions in secondary schools.
Further, he ridiculed a former Minister of Agriculture for allegedly importing rice from China instead of focusing on boosting local rice production.
“Why was the Minister of Agriculture importing polished rice from China?” he asked, questioning the commitment to self-sufficiency in food production.
By Ernest Kofi Adu, Parliament House