Parliament approves GH¢68.13bn Mini-Budget for 3 months

Parliament has approved a GH¢68.13 billion Mini-Budget for the first quarter of 2025, ensuring uninterrupted government operations during the transitional period.
The approval follows deliberations by the Budget and Finance Committees of Parliament.
The Mini-Budget, presented by Finance Minister Dr. Mohammed Amin Adam, provides fiscal stability until the incoming administration delivers a full-year budget.
Speaker of Parliament, Mr. Alban Bagbin, referred the proposal to the joint Budget and Finance Committees for review, in line with Article 180 of the 1992 Constitution and Parliamentary Standing Orders.
The approval allows the government to continue its essential functions during this crucial handover period.

Key highlights of the mini-budget
The budget includes projections for Total Revenue and Grants of GH¢42.54 billion, representing 3.5% of GDP. Notable revenue streams include:

Domestic Revenue: GH¢40.67 billion
Tax Revenue: GH¢1.87 billion
Grants: GH¢68.65 million
Social Security Contributions and Other Revenues: GH¢1.04 billion
Expenditure provisions will prioritize critical areas such as healthcare, education, and infrastructure development, with tax refunds amounting to GH¢2.37 billion.

Debate and divergent views
The approval process witnessed intense debates between the Majority and Minority caucuses. Discussions centered on spending priorities in key sectors and strategies for revenue mobilization. The Minority raised concerns over delays in the budget presentation, alleging deliberate postponement by the Finance Minister.
However, the Majority dismissed these claims, emphasizing the Mini-Budget’s essential role in maintaining government functions.

Significance of the Mini-Budget
As a constitutional mandate during transition years, the Mini-Budget ensures fiscal continuity, preventing disruptions in government operations.
It addresses Ghana’s immediate fiscal needs and promotes economic stability.

Preparing for the incoming administration
The Mini-Budget marks a pivotal moment as the administration of President-elect John Dramani Mahama prepares to assume office. It provides a financial framework to guide the transition and lay the groundwork for the new government’s policies.
Parliament’s swift action underscores its commitment to avoiding a government shutdown and maintaining stability during the transfer of power.