2025 mid-year budget review: CERPA praises stabilisation, urges stronger reforms

The Centre for Economic Research and Policy Analysis (CERPA) has released its review of Ghana’s 2025 Mid-Year Budget Statement, noting encouraging signs of economic stability while calling for stronger reforms and better policy execution.

According to CERPA in a statement dated Monday August 4, the budget, presented to Parliament by the Finance Minister on July 24, shows positive economic gains including falling inflation, stronger currency performance, and reduced public debt.

Key Economic Highlights:

GDP Growth: 5.3% in Q1 2025, up from 4.9% in Q1 2024, driven by 6.8% non-oil growth.
Inflation: Fell from 23.8% (Dec 2024) to 13.7% (June 2025).
Cedi Performance: Appreciated 42.6% against the US dollar year-on-year.
Debt Reduction: Public debt declined from GHS 726.7 billion to GHS 613 billion, cutting the debt-to-GDP ratio from 61.8% to 43.8%.

While acknowledging the progress, CERPA pointed out key concerns. Revenue and grants were below target (GHS 99.3 billion vs. GHS 102.6 billion), and capital spending was significantly reduced, potentially slowing infrastructure development and job creation.

The think tank also urged the government to present a clear long-term plan for managing debt after the current restructuring process.

CERPA’s Recommendations:

Increase non-oil tax revenue collection.
Reprioritise capital spending to boost infrastructure and employment.
Outline a clear exit strategy from the debt restructuring programme.
Improve implementation of key initiatives, including the Ghana Gold Board reforms, 24-hour economy, and One Million Coders initiative.
Ensure the Ghana Medical Trust Fund operates with transparency and fiscal responsibility.

CERPA concluded by encouraging the government to build on current progress while remaining focused on delivery, transparency, and long-term economic resilience.

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