Balancing campaign promises with fiscal responsibility

The Minister of Finance, Dr Cassiel Ato Forson, will today present the government’s first budget to Parliament in which many of the initiatives meant to reduce the cost of living and doing business are expected to be announced. 

It will mark a significant milestone for the new administration’s quest to reduce specific taxes, undertake widespread economic and social reforms and introduce initiatives that will stabilise the economy, generate revenue domestically and spur shared growth. 

Today’s budget presentation marks the first major economic policy statement of President Mahama's new administration. The Graphics Business believes while campaign promises flow easily during election season, their implementation requires navigating Ghana's complex economic reality—a reality shaped by our 17th IMF programme and persistent fiscal challenges.

The administration has signaled bold tax relief measures, including the abolition of the E-Levy, COVID-19 levy, bet winnings tax and emissions levy. 

Port tax waivers are also expected to reduce import costs. These populist measures will certainly please many voters who responded to Mahama's "120-day social contract" pledge, but the fiscal mathematics deserves scrutiny.

Ghana's fundamental economic challenge remains inadequate revenue mobilisation hence any government that cuts taxes must, therefore, simultaneously expand the tax base or reduce expenditure. 

The budget must, therefore, demonstrate how the administration plans to finance its promises without derailing our IMF programme or worsening our debt situation.

Dr Forson's consultative approach—visiting the Makola Market traders and engaging youth through social media—signals a welcome shift toward inclusive policymaking. 

These stakeholders have articulated clear concerns about high taxation, rising business costs and currency instability. 

The true measure of today’s budget will be whether it offers sustainable solutions to these challenges rather than short-term populist measures.

Infrastructure development, industrialisation and agricultural investment will likely feature prominently, particularly given the Ghana Meteorological Agency's concerning forecast of prolonged dry spells. 

Last year's drought necessitated a GH₵8 billion emergency package. With climate challenges intensifying, strategic investment in irrigation infrastructure and agricultural mechanisation is imperative not just for food security but also for controlling inflation.

The recommendations from the National Economic Dialogue—focusing on tax reforms, addressing revenue leakages and strengthening fiscal responsibility legislation—provide a blueprint for genuine economic transformation. The budget should incorporate these medium-term measures alongside immediate relief promises.

Ghana stands at a critical juncture. Our economy requires both immediate relief for struggling citizens and fundamental structural reforms. 

The administration must resist the temptation to prioritise political expediency over fiscal discipline. Previous administrations have repeatedly fallen into this trap, contributing to our current economic difficulties.

What Ghana needs is a balanced approach that provides targeted relief to vulnerable populations while expanding the tax base, improving compliance and creating conditions for sustainable private sector growth. Meaningful reform of state-owned enterprises, rationalisation of government expenditure and digitalisation of revenue collection systems must accompany any tax reductions.

Today’s budget will reveal whether President Mahama's administration dares to make difficult choices. Will it prioritise sustainable economic transformation or focus primarily on delivering campaign promises without securing adequate financing?

For too long, Ghana's economic policy has oscillated between austerity under IMF programmes and expansionary spending during election cycles. 

This destructive pattern has undermined our economic development. Breaking this cycle requires political courage and honest communication with citizens about economic realities.

As Dr Forson presents his maiden budget, we urge the administration to balance its welfare promises with fiscal responsibility. Ghana's economic recovery demands nothing less than honest leadership, strategic vision and disciplined implementation. 

The true test of this budget—and indeed this administration—will be whether it can deliver meaningful relief to citizens, while strengthening the fundamentals of the economy.