UG Finance Expert Calls for Fiscal Discipline, Transparency Ahead of Mid-Year Budget Presentation
As Finance Minister Dr. Cassiel Ato Forson prepares to deliver the 2025 Mid-Year Budget Review to Parliament today, Associate Professor of Finance at the University of Ghana Business School, Dr. Elikplimi Komla Agbloyor, has called on the government to prioritise fiscal consolidation, revenue performance, and borrowing transparency.
Speaking on the Citi Breakfast Show on Thursday, July 24, 2025, Dr. Agbloyor said while expectations for the mid-year budget are modest, it is critical for government to sustain economic gains made under the current IMF-backed programme and avoid a return to unsustainable spending patterns.
“We do not expect much, but it is important that we consolidate the gains that we are seeing. We want to see a sign of continued fiscal consolidation—i.e., expenditure control,” he stated.
He cautioned against pressure to increase public spending, warning that such moves could widen the deficit and derail macroeconomic progress.
Revenue and Market Confidence
Dr. Agbloyor stressed the importance of enhancing revenue mobilisation, noting that improved fiscal performance would strengthen market confidence and reinforce Ghana’s commitment to its economic recovery roadmap.
He also emphasised the need for clarity on the government’s borrowing plans, especially in light of falling inflation and a declining monetary policy rate, which are expected to shift investor appetite toward long-term bonds.
“The finance minister did mention that they are likely to come back to the domestic bond market later in the year. We want to see more details on that,” he added.
External Financing and IMF Updates
On the international front, the professor urged the government to provide updates on key financing arrangements, including the Eurobond restructuring process and the status of IMF disbursements.
Such disclosures, he said, will be vital for evaluating the government’s ability to maintain macroeconomic stability through the second half of the year.
Today’s mid-year budget is expected to highlight government performance in the first half of 2025 and outline plans for the 24-hour economy initiative, infrastructure rollouts, and revenue-enhancing reforms aimed at reaching the target of GH¢200 billion in domestic revenue by year-end.
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