2025 Budget Lacks Credibility to Attract Investors – MP for Kwabre East
The Member of Parliament for Kwabre East, Hon. Akwasi Gyamfi Onyina-Acheampong, has criticized the 2025 budget presented to Parliament, stating that it lacks credibility to inspire investor confidence.
According to him, the economic figures presented by the government were manipulated to discredit the previous administration’s sound economic policies.
Hon. Onyina-Acheampong made these remarks in response to the 2025 Budget Statement delivered in Parliament on Tuesday, March 11, 2025, by Finance Minister Dr. Cassel Ato Forson.
Economic Growth Figures in Question
The MP described the budget as a “HAZAR” budget, implying that it presents contradictory figures.
He pointed out that the previous government left behind an economy that grew at a rate of 5.7%, contrary to claims that it was struggling.
He noted that GDP had increased significantly from GHS 219 billion to GHS 1.3 trillion during the tenure of the past administration, questioning the new government’s assertion that the economy had collapsed.
The lawmaker further highlighted that the Domestic Debt Exchange Program (DDEP) payments were honored in February 2025, just a few weeks into the new administration’s tenure, indicating that funds were available.
He also compared the foreign exchange reserves left by the previous government, which provided four months of import cover, to the current administration’s three-month cover.
Contradictions in GDP Growth Targets
Hon. Onyina-Acheampong expressed concern over the budget’s economic growth projections. While the previous government achieved a 5.7% growth rate, the current administration is targeting 4% growth, which he argues does not align with their claims of a “reset” economy. He also pointed out that the debt-to-GDP ratio had improved from 72% to 61.8% before the new government assumed office, contrary to their claims of economic distress.
Taxation and Revenue Measures
The MP criticized the removal of the Electronic Levy (E-Levy) and questioned the government’s strategy for replacing the lost revenue.
He pointed out inconsistencies in the taxation approach, particularly regarding tax refund ceilings and the withholding tax on lottery winnings, arguing that reducing the tax refund provision from 6% to 4% does not create new revenue but rather limits taxpayer benefits.
The MP also questioned the increase in the communication service tax from 6% to 10%, which was not explicitly mentioned in the Finance Minister’s budget presentation but later revealed by the sector minister.
Policy Reversals and Their Impact
Hon. Onyina-Acheampong also took issue with the cancellation of key policies such as One District, One Factory (1D1F) and the rebranding of existing initiatives. He argued that 1D1F had the potential to support the new government’s 24-hour economy policy and create employment opportunities. Instead of scrapping these initiatives, he suggested that the government should improve transparency in their implementation.
He also expressed disappointment over the lack of emphasis on completing the Agenda 111 hospital projects, criticizing the decision to focus on new hospital projects rather than finishing the ongoing ones.
Capital Projects for Kwabre East
The MP outlined key infrastructure projects he hoped would be prioritized in the budget, including:
Improvement of road infrastructure, including major routes such as the Aboaso-Kenyase-Bonwire road, Maponteng road, and Suame Roundabout-Tanoso-Kwabre East stretch. The Suame Interchange and its auxiliary roads to ease traffic congestion in his constituency
Hon. Onyina-Acheampong emphasized that while the budget addressed some misconceptions about the economy’s state, it failed to provide innovative solutions for economic growth. He urged the government to refine its policies to ensure continuity and improvement rather than dismantling existing projects.
He called for further clarification on tax policies and revenue generation strategies, stressing that ambiguous communication from the Finance Ministry could mislead the public and investors alike.
Source: Felix Nyaaba//expressnewsghana.com
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