Minister for Finance, Dr Cassiel Ato Forson, will today present the much-anticipated 2025 Mid-Year Budget Review to Parliament, with all eyes keenly fixed on whether government will maintain its original expenditure envelope or seek a supplementary budget in response to emerging fiscal and political pressures.
The review is being delivered against a backdrop of notable improvements in Ghana’s macroeconomic indicators, which have raised expectations for a fiscal policy stance that promotes consolidation, investor confidence, and long-term price stability.
Inflation, which stood at 23.5 percent at the beginning of the year, dropped significantly to 13.7 percent by the end of June 2025.
This disinflation trend has led analysts to believe that Ghana could achieve single-digit inflation before the end of the year, ahead of the official target of 11.9 percent.
A major source of public concern at the start of President Mahama’s second term was the instability of the cedi.
However, the local currency has recorded a sharp recovery, strengthening from approximately GH¢15 to the US dollar in January to around GH¢10.45 currently.
This appreciation has led to marginal price reductions in some retail outlets, while manufacturers continue to monitor the cedi’s stability within a 60-day pricing window agreed upon with key business associations.
On the fiscal side, the removal of the betting tax has been widely welcomed, but the newly introduced GH¢1 fuel levy has faced public backlash. Stakeholders are eager to learn whether the review will provide clarity on the duration of the levy or introduce a sunset clause.
Meanwhile, economic growth prospects appear promising.
Although the government initially projected GDP growth at 4.4 percent for 2025, recent data from the Ghana Statistical Service shows a stronger-than-expected 5.3 percent growth in the first quarter alone — likely prompting an upward revision in the fiscal outlook.
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