Member of Parliament for Ofoase Ayirebi, Kojo Oppong Nkrumah, has criticised the Mahama administration’s 2025 revenue generation strategy, describing it as a failed plan that fell short of expectations and forced the government to introduce new taxes despite earlier promises.
Contributing to the debate on the 2025 Mid-Year Budget Review in Parliament on Monday, July 28, the former Minister for Information said the initial fiscal programme, outlined by Finance Minister Dr. Cassiel Ato Forson, lacked feasibility and ultimately failed to deliver on its key targets.
Oppong Nkrumah recalled that during the presentation of the 2025 Budget earlier this year, Dr. Forson promised to raise GH¢102 billion in revenue without introducing any new taxes, while simultaneously increasing Ghana’s tax-to-GDP ratio from 13% to 18%. The Finance Minister claimed the revenue gap of GH¢6 billion would be closed by reducing the VAT retention threshold from 6% to 4%—a strategy Oppong Nkrumah and others had warned would not suffice.
“The outturns have come and now you are beginning to realise that the Minister’s revenue strategy, originally as he presented, has failed,” Oppong Nkrumah told the House. “Revenue has underperformed by GH¢3 billion, and to fill the gap, the Minister has introduced eight new taxes and clawed back GH¢11 billion from December 31 sweeps.”
Despite his criticism, the former Works and Housing Minister commended Dr. Forson for adjusting expenditure in response to opposition critiques. While the original expenditure target was set at GH¢128 billion, the government has now slashed it by GH¢19 billion at mid-year.
“I commend him for listening,” Oppong Nkrumah noted. “But I will show him where the problem still is.”
The debate comes on the heels of the mid-year budget review presented by Dr. Forson on Thursday, July 24, in which he touted Ghana’s recent economic progress and renewed international confidence in the country’s recovery programme.
Dr. Forson highlighted that on June 16, 2025, global credit ratings agency Fitch upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating to ‘B-’ with a stable outlook—marking the country’s first rating upgrade since 2021. Fitch cited strong exchange rate performance, declining debt levels, increased reserve accumulation, and restored relations with external creditors.
“This is just the beginning. We are determined to do better than the B- rating. Ghana deserves better,” the Finance Minister declared.
He assured Ghanaians that the government’s policies are targeted at reducing hardship and delivering meaningful improvements to livelihoods. “We see you, we hear you, and we’re working for you,” Dr. Forson said, emphasising the government’s sensitivity to the everyday struggles of citizens.
He further outlined a six-point strategy to sustain the gains achieved so far, including maintaining fiscal discipline, broadening the tax base without overburdening citizens, implementing structural reforms, strengthening monetary policy, diversifying the economy, and maintaining strong ties with international partners.
The Finance Minister also expressed optimism that other rating agencies—S&P and Moody’s—would soon follow Fitch’s lead, given the progress made in stabilising the economy and promoting inclusive growth.