Member of Parliament for Ofoase Ayirebi, Kojo Oppong Nkrumah, has said that the original revenue generation strategy that was presented by the Finance Minister, Dr Cassiel Ato Forson, in the 2025 budget has failed.
Oppong Nkrumah recalled that when the Minister announced in the 2025 budget a fiscal programme where he was going to raise revenue of about 102 billion Cedis without introducing new taxes.
The Minister said he said he was going to increase the tax-to-GDP ratio from 13 to 18 per cent without introducing new taxes.
He added that despite the removal of taxes he was promising, the way he was going to close the 6 billion Cedi gap was was that he was going to reduce VAT retention threshold from 6 per cent to 4 per cent.
But contributing to a debate on the mid-year budget presentation in Parliament on Monday, July 28, the Former Works and Housing Minister said the Minister’s strategy failed because revenue underperformed.
He said “If you look at the fiscal programme that the Minister for Finance presented to us earlier this year, and you look at the critique that we gave as a side of the House, and then you look at the returns that he has brought to us in the mid-year review, I will commend him for listening.
“When the Minister came to the House, he came with a fiscal programme, he said he was going to raise revenue of about 102 billion Cedis without introducing new taxes. Let no soul say he wasn’t here on that day. We all recall when he said he was going to increase the tax-to-GDP ratio from 13 to 18 per cent without introducing new taxes. I remember us drawing his attention to the fact that that was not possible. In fact, he told us that despite the removal of taxes he was promising, the way he was going to close the 6 billion Cedi gap was was that he was going to reduce VAT retention threshold from 6 per cent to 4 per cent.
“The outturns have come and now you are beginning to realise that the Minister’s revenue strategy, originally as he presented has failed. Remember the Minister clawed back about 11billion Cedis swept from 31 December and then has introduced 8 new taxes to try to close that gap. Despite the evidence that his strategy has failed, revenue has underformed by 3 billion Cedis.
“But why I commend him is that on the expenditure side, contrary to the programme he brought to us that he was going to spend 128 billion Cedis, because of the critique that it was important to cut 3 per cent of about GDP, he has now gone and has cut, half year he has cut 19 billion Cedis. So I commend him for listening, but I will show him where the problem still is.”
During the budget reading on Thursday, July 24, the Finance Minister, Dr Cassiel Ato Forson, said that the progress Ghana is making in the economic reforms and debt restructuring efforts has been recognised internationally.
On 16th June 2025, he said, Fitch Ratings upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating to ‘B-‘ with a stable outlook from ‘Restricted Default’, the first time since 2021.
Fitch cited significant exchange rate appreciation, declining debt levels, strong nominal GDP growth, increased reserve accumulation and normalised relations with external creditors as key drivers.
He said that “Mr. Speaker, to sustain these gains, we will, among other things: i.maintain fiscal discipline through continued implementation of prudent policies to promote fiscal and debt sustainability; continue the aggressive revenue mobilization by strengthening tax collection systems and broadening the tax base to increase domestic revenues without overburdening citizens; accelerate structural reforms in public financial management, including transparency and accountability measures, to improve efficiency and reduce corruption; strengthen monetary policy framework by BoG to complement the fiscal consolidation programme to control inflation and support economic stability; diversify the economy through investments in sectors beyond traditional exports to reduce vulnerability to commodity price shocks; and continue to maintain strong relationships with international financial institutions and development partners to support ongoing reforms and access technical assistance.”
He further stated that it is expected that the other rating agencies, namely S&P and Moody’s will follow suit given the remarkable progress we are making in ensuring economic stability and promoting inclusive growth.
“Mr. Speaker, this is just the beginning. We are determined to do better than the B- rating. Ghana deserves better,” he said.
He reassured Ghanaians of the government’s unwavering commitment to addressing their concerns, emphasising that every policy being rolled out is designed to ease hardship and deliver meaningful change.
Delivering the 2025 Mid-Year Budget Review in Parliament on Thursday, July 24, Dr Forson acknowledged the challenges citizens have faced over the past few years, while highlighting the government’s dedication to restoring hope and improving livelihoods.
“We see you, we hear you and we’re working for you,” he declared, drawing attention to the administration’s sensitivity to public concerns.
He stressed that the Mahama-led government has taken significant steps within its first 200 days to stabilise the economy, enhance social protection, and support job creation.
Dr Forson said these efforts are grounded in the belief that governance must respond to the real needs of the people.
The Finance Minister also called for unity and patience, noting that while the path to full recovery may be long, the government remains focused on inclusive growth and long-term prosperity.
Parliament is expected to debate the revised estimates in the coming days as part of the legislative process.
