Assembly Member for Zorko-Gambrongo, Hon. Abiire Awineyesema, has described the 2025 Budget Statement as the best economic document in a decade, hailing the Finance Minister, Dr. Cassiel Ato Forson, and his team for their strategic financial planning.
In a statement assessing the budget, Hon. Abiire argued that the presentation proved that the government “doesn’t only have the men but men with brains”, countering claims that the administration lacks competent economic managers.
Key Highlights of the Budget
Hon. Abiire commended the proposed VAT reforms, which he believes will drive business expansion and improve compliance. He also praised the reduction of the Tax Refund account from 6% to 4%, calling it a bold move to curb financial abuse and misapplications.
Additionally, he welcomed the increase in the Growth and Sustainability Levy from 1% to 3%, stressing that natural resources should be used to sustain the country’s environment rather than being controlled by “cynical criminal leadership.”
He further recommended that Ghana should negotiate Production Sharing Agreements (PSA) to maximize resource benefits.
Decentralization and Local Development
The government’s decision to commit 80% of the District Assemblies Common Fund (DACF) directly to local assemblies was described as a major step forward.
However, Hon. Abiire pointed out that it still falls short of full compliance with Section 173 of the Local Governance Act, 2016 (Act 936), which aims to ensure full decentralization.
He also welcomed the proposed amendment of the Petroleum Revenue Management Act, 2011 (Act 815), which will allow district assemblies to directly benefit from oil revenue.
However, he emphasized that for this policy to drive meaningful development, assembly members must be trained in financial management to effectively utilize these funds.
Education, Debt Management, and Future Considerations
A major highlight of the budget is the introduction of dedicated funding for the Free SHS program, which Hon. Abiire said was long overdue.
He expressed confidence that amending the GETFund Act will enhance financial stability in the education sector.
On debt management, he praised the shift from what he termed a “kelewele approach to borrowing” toward a Recognise, Improve, and Sustain (RIS) model, inspired by Ethiopia’s public financial strategy.
The integration of GHANEPS with GIFMIS, he noted, will improve fiscal discipline and Ghana’s reputation in global financial circles.
Unmet Expectations and a Call for Accountability
Despite his positive assessment, Hon. Abiire expressed disappointment that some of his expectations were not met, including:
Extending the School Feeding Program to Junior High Schools
Increasing DACF allocation to 10%
Providing a minimum GHS 2,000 monthly allowance for assembly members
While acknowledging the budget’s strengths, he issued a caution on implementation, warning that if the seven pillars of Public Expenditure and Financial Accountability (PEFA) are not strictly followed, the Auditor-General’s report next year could reveal financial mismanagement.