Deloitte emphasizes the need for structural adjustments in Ghana’s economy despite signs of recovery in 2024. The 2025 Budget Statement reveals proposed tax reforms, including VAT changes and initiatives aimed at fostering a 24-Hour economy to promote growth and job creation.
Ghana’s economy is showing signs of recovery in 2024; however, it necessitates significant structural adjustments to achieve sustainable growth and manageable debt levels, according to Deloitte. The firm highlights that the government has proposed various domestic revenue mobilization strategies and expenditure rationalization measures in the 2025 Budget Statement to stabilize the economy and enhance macroeconomic indicators.
A significant aspect of the 2025 Budget Statement includes the elimination of several taxes and the anticipated reform of the Value Added Tax (VAT) system. Deloitte expressed optimism about the proposed VAT reforms, stating, “The expected VAT reform would be much welcomed by the business community.” Furthermore, the business sector anticipates a “realignment” of import duties on production inputs to foster growth and increase job opportunities within the economy.
Deloitte also mentioned the need for specific details regarding the 24-Hour economy initiative and the utilization of government procurement to encourage local growth. The “Big Push” strategic infrastructural development program is projected to allocate US$10 billion for infrastructure development aimed at bolstering the economy.
The report indicates that the Ghanaian economy has faced considerable challenges in recent years due to the International Monetary Fund’s Extended Credit Facility (ECF) program, which is designed to restore macroeconomic stability and ensure sustainable debt levels. Deloitte is particularly awaiting further information on the proposed 24-Hour economy concept introduced by the Mahama administration during the budget presentation to Parliament.
This initiative is expected to cultivate job creation and promote sustainable economic development. Dr. Forson, speaking about the 24-hour economy, asserted that “Ghana already has the necessary legal framework for which we look forward to seeing tightening of fiscal responsibility rules to ensure debt sustainability.” Addressing the current debt crisis within the energy sector is crucial, necessitating a comprehensive approach as emphasized by Deloitte.
In summary, while Ghana’s economy exhibits positive signs of recovery, it requires structural reforms for long-term sustainability. The 2025 Budget Statement outlines significant tax reforms, including VAT adjustments and expenditure rationalization efforts. The focus on promoting a 24-Hour economy and government initiatives highlights the commitment to facilitating economic growth and job creation amid challenges posed by previous economic headwinds.
Original Source: 3news.com
