2025 Budget offers optimism, but sluggish growth projection concerning – ISSER

The Institute for Statistical, Social, and Economic Research (ISSER) has indicated that the 2025 budget presents a sense of optimism, particularly with its tax relief initiatives.

However, in its 2025 Post Budget Review, the institute raised concerns over sluggish GDP growth projections, which fall short of the Sub-Saharan African average.

Speaking during the budget forum, the Director of ISSER, Prof. Peter Quartey, stressed the need for the government to work to achieve its ambitious revenue targets.

“The Budget inspires hope especially some of the tax reliefs not just the reliefs but the reforms that have been proposed. If they are done properly then we stand to gain. However, the low GDP projection which is below the Sub-Saharan African Growth rate is a source of concern to us,” he stated.

He further added: “We need to grow more to a high rate of about 6 to 8 percent if we really want to move a lot of people out of poverty. We are also not sure whether the revenue target will be met. Corporate and property taxes going to be increased by 45% by what magic are going to this.”

Prof. Quartey also opposed the government’s decision to scrap the betting tax. According to him there is need for the government to redirect betting tax revenues into impactful youth development programmes rather than eliminating the levy.

“We are told road tolls raked in GH₵72 million, and betting tax is around GH₵140 million. Now, we want to introduce road tolls, which generate less, and scrap betting tax, which brings in more. I know the young ones won’t be happy with me, but for once, I am against this,” he added.