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Prof. Lord Mensah Expects 2025 Q1 Budget to Focus on Deficit Reduction, IMF Compliance

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Prof. Lord Mensah Expects 2025 Q1 Budget to Focus on Deficit Reduction, IMF Compliance

Professor of Financial Economics at the University of Ghana Business School, Professor Lord Mensah, has expressed expectations for a reduced budget deficit in the upcoming first-quarter budget for 2025, citing the need for stringent fiscal discipline to maintain the progress achieved under Ghana’s International Monetary Fund (IMF) programme.

In an interview with TV3 on December 18, Professor Mensah highlighted that the guidelines set by the IMF will be pivotal in shaping expenditure priorities for the early months of 2025.

“We entered this election cycle under an IMF programme, and the rules and guidelines established by the Fund have been crucial in guiding our fiscal decisions,” Prof. Mensah said. “I expect the government to remain aligned with the IMF’s directives, particularly in the first quarter, as we transition between administrations.”

Meanwhile, the anticipated 2025 Q1 budget will be presented by Finance Minister Dr. Mohammed Amin Adam later this week, as delays have pushed the presentation beyond the originally scheduled date of December 16.

The delay is linked to Ghana’s ongoing post-election transition process, which has involved key engagements between the Finance Minister and the incoming administration’s transition team.

Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, attributed the deferment to overlapping responsibilities, noting that the Finance Minister’s involvement in transition meetings had pushed back the presentation.

“The Finance Minister has been occupied with transition discussions, but the Appropriation Bill will be ready for submission by week’s end,” Kyei-Mensah-Bonsu confirmed.

Once presented, the Appropriation Bill will be scrutinized by the Finance Committee before being debated and passed in Parliament.

The bill will set the financial framework for government operations from January to March 2025, providing the incoming National Democratic Congress (NDC) administration with the necessary resources to manage the economy, maintain essential services, and address fiscal imbalances in the early stages of its tenure.

 

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