Deloitte emphasizes that Ghana’s economy needs structural adjustments for sustainable growth despite positive 2024 recovery signs. The government’s 2025 Budget includes tax abolitions, VAT reforms, and infrastructure investments, aiming to stabilize the economy and improve key indicators. The 24-Hour economy initiative is also highlighted as a potential job creator.
Ghana’s economy is exhibiting signs of recovery by 2024; however, structural adjustments are necessary to achieve sustainable growth and manage debt levels, according to Deloitte. In its 2025 Budget Statement, the government aims to implement domestic revenue mobilization and expenditure rationalization strategies to bolster economic stability and enhance macroeconomic indicators.
Among the significant proposals in the budget is the abolition of certain taxes and the planned reform of the Value Added Tax (VAT) regime. Deloitte emphasizes that the expected VAT reform would be positively received by the business community and anticipates prompt initiation and completion this year. Furthermore, businesses hope for the alignment of import duties to support the growth of local production and job creation.
Deloitte also expresses interest in the details regarding the 24-Hour economy initiative, which the government hopes will stimulate local growth. Additionally, the “Big Push” strategic plan proposes a US$10 billion investment in infrastructure development. The firm acknowledges the severe economic challenges Ghana has faced, particularly from the IMF Extended Credit Facility program, which seeks to restore macroeconomic stability and ensure debt sustainability.
To address these goals, specific governmental commitments related to the 24-Hour economy policy, announced by the Mahama administration, are under consideration. This initiative, believed to enhance job creation and sustainable growth, aligns with existing legal frameworks and aspirations for stricter fiscal responsibility rules to achieve debt sustainability. Deloitte reaffirms its commitment to providing essential insights into economic developments that impact clients and society at large.
In summary, while Ghana’s economy shows promising recovery signs, Deloitte insists on necessary structural reforms for sustainable growth and effective debt management. The proposed measures in the 2025 Budget Statement, including tax reforms and infrastructure investments, are critical for stabilizing the economy. Continuing attention to initiatives like the 24-Hour economy policy remains fundamental as Ghana seeks to enhance job creation and economic viability.
Original Source: 3news.com
