Deloitte has indicated that while Ghana’s economy shows recovery signals in 2024, it necessitates structural adjustments for sustainable growth. Key proposals in the 2025 Budget include tax reforms and strategies for revenue mobilization. The success of the VAT reform and the 24-Hour economy initiative is crucial for job creation and economic stability.
According to a report by Deloitte, Ghana’s economy, while showing signs of recovery in 2024, will necessitate structural adjustments to ensure sustainable growth and manageable debt levels. The firm emphasized the need for the government to implement comprehensive measures as outlined in the 2025 Budget Statement to stabilize the economy and improve key macroeconomic indicators.
A notable change proposed in the 2025 Budget is the abolishment of several taxes along with a reformed Value Added Tax (VAT) regime. Deloitte highlighted the importance of this VAT reform for the business community, expressing hope for its initiation this year. Furthermore, businesses anticipate a realignment of import duties on production inputs to facilitate growth and job creation.
Deloitte also acknowledged the challenges facing Ghana’s economy, which have arisen from an International Monetary Fund (IMF) Extended Credit Facility (ECF) program aimed at restoring macroeconomic stability. The report also noted that specific government initiatives, such as the 24-Hour economy, are being monitored for their potential impact on job creation and sustainable economic development.
In his remarks during the presentation of the 2025 Budget Statement, Dr. Forson highlighted the 24-Hour economy proposal’s potential. He reiterated the need for tightening fiscal responsibility rules to tackle the energy sector’s debt levels, particularly in electricity generation and distribution. Deloitte’s commitment to guiding clients through these economic developments remains paramount amidst these times of uncertainty.
In conclusion, Deloitte’s analysis underscores the necessity for structural adjustments within Ghana’s economy to achieve sustainable growth. The 2025 Budget Statement proposes significant reforms, particularly the overhaul of the VAT regime and tax abolishments, aimed at stabilizing economic conditions. The successful implementation of these measures, alongside initiatives like the 24-Hour economy, is essential for revitalizing Ghana’s economic landscape and managing debt levels.
Original Source: 3news.com
