Top 10 Key Takeaways from PwC’s 2025 Budget Digest

PwC’s 2025 Budget Digest breaks down critical insights on Ghana’s economic outlook, tax policies, and fiscal strategies for the year ahead. From major tax reforms to sector-specific growth initiatives, this report highlights the essential changes businesses and individuals need to know. Here are the top 10 must-know highlights shaping Ghana’s financial landscape in 2025

1. Economic Growth Outlook – Ghana’s GDP is projected to grow by 4.0% in 2025, up from 2.8% in 2024, with Agriculture expected to expand by 4.8%.
2. Inflation and Exchange Rate – Inflation stood at 23.1% in February 2025, while the cedi depreciated, with the US dollar now trading at GH¢15.5.
3. Fiscal Deficit Reduction – The budget deficit is expected to drop to 3.1% of GDP, down from 4.2% in 2024, signaling improved fiscal discipline.
4. Public Debt Levels – Ghana’s public debt-to-GDP ratio remains high, but the government aims to gradually reduce borrowing and sustain international reserves.
5. Revenue Mobilization – Total projected revenue for 2025 is GH¢224.9 billion, a 21% increase, driven mainly by income and property taxes (GH¢97.8 billion).
6. Government Spending Priorities – Total expenditure is set at GH¢268.8 billion, with GH¢76.6 billion for salaries, GH¢64.2 billion for interest payments, and GH¢54.5 billion for grants.
7. Tax Policy Changes – The E-Levy and Betting Tax have been abolished, while the tax-free income threshold has been increased to GH¢540.
8. Interest Rates and Monetary Policy – Bank of Ghana’s policy rate stands at 30.3%, with 91-day Treasury bill rates at 29.4%, keeping borrowing costs high.
9. Infrastructure and Social Spending – GH¢32.9 billion allocated for capital projects, while social benefits spending increased by 339.3%, reflecting welfare priorities.
10. Key Risks and Challenges – Debt servicing remains high, with interest payments consuming 24% of total expenditure, while inflation and revenue mobilization remain concerns.

So What?

Ghana’s 2025 Budget focuses on stability and growth, but its success will depend on how well policies are implemented. Managing debt, boosting revenue, and sustaining economic expansion will be key to achieving real progress.

Last Updated on March 18, 2025 by samboad