Minority Accuses Finance Minister of Misleading Budget Claims

The Minority in Parliament has strongly criticised the Finance Minister, Dr Cassiel Ato Forson, over what it describes as misleading and selective data in his 2025 Mid-Year Budget Review, presented last week.

At a press conference held in Parliament on Tuesday, 29 July 2025, former Finance Minister, Dr Mohammed Amin Adam, dismissed Dr Forson’s claim that the 2022 economic downturn was primarily due to corruption and reckless spending under the previous administration.

Dr Adam argued that the former government had, in fact, laid a solid economic foundation, citing primary surpluses recorded between 2017 and 2019. He emphasised that 2017 marked Ghana’s first primary surplus in over a decade. Furthermore, he noted that the first half of 2024 also saw a surplus, contradicting claims of poor fiscal discipline.

“The Finance Minister must show humility and acknowledge the strong foundation handed to him. The figures are clear—growth and stability were already in motion,” Dr Adam stated.

He further challenged the Minister’s boast of reducing the debt-to-GDP ratio, stating that this progress was largely due to initiatives introduced under the previous administration. These included the debt restructuring programme, under which France cancelled €87.7 million of Ghana’s debt, and GDP expansion efforts that helped improve the ratio.

Dr Adam insisted there had been no significant change in fiscal space, aside from Cedi appreciation supported by reserve inflows. He pointed out that GDP grew from 4.9% in Q1 2024 to 5.3% in Q1 2025—an 8% increase. “For context, there was a 50% jump in GDP growth from 4.4% in Q1 2016 to 6.6% in Q1 2017,” he added.

According to him, outturns show the Finance Minister had to abandon his initial fiscal plan and implement suggestions made by the Minority when the original budget was presented.

“The GH¢19 billion in cuts that enabled a 1.1% primary balance were advocated by us. Without those changes, the government would have missed its targets,” Dr Adam asserted.

Also speaking at the event, MP for Ofoase Ayirebi, Kojo Oppong Nkrumah, took aim at the government’s revenue mobilisation strategy. He noted that despite the promise of increasing revenue without new taxes, eight new taxes were introduced after taking GH¢11 billion in balances forward. Still, the government recorded a GH¢3 billion revenue shortfall.

He warned that the combined effect of new taxes and massive expenditure cuts—unmatched by any compensating policies—was contributing to inflation and impairing government delivery of public services.

“The Bank of Ghana has warned of inflationary pressures from these policies. The people will feel the brunt,” Mr Nkrumah said.