The Association of Ghana Industries (AGI) has urged the government to ensure that the planned expenditure cuts in the 2025 Budget are strategically targeted to avoid hindering economic growth and productivity.
Dr. Humphrey Ayim-Darke, President of AGI, emphasized the importance of balancing fiscal discipline with the need to stimulate economic growth, especially by engaging the private sector in key areas such as infrastructure development.
“We are in challenging times, and the government cannot tackle everything alone. This is why private sector involvement is crucial. Expenditure cuts should focus on areas where partnerships with the private sector can step in to provide necessary support,” Dr. Ayim-Darke noted.
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His comments followed a directive from President John Mahama instructing Finance Minister Dr. Ato Forson to implement significant expenditure reductions in the upcoming budget. These cuts are set to include budget reductions for the Office of Government Machinery.
President Mahama underscored the need for the executive branch of government to lead by example in rationalizing spending, as part of broader efforts to manage the fiscal deficit.
While supporting fiscal prudence, Dr. Ayim-Darke cautioned against blanket cuts that could dampen economic activity. He pointed out that government spending often stimulates consumption and productivity. To avoid adverse effects, he recommended targeted cuts that would encourage Public-Private Partnerships (PPPs) to bridge gaps, especially in infrastructure projects.
The AGI President also called on the government to introduce policies that support struggling manufacturing firms and help industries remain competitive. He stressed the need to alleviate the tax burden on businesses and implement measures to maintain the stability of the Ghanaian cedi.
Additionally, Dr. Ayim-Darke welcomed President Mahama’s commitment to holding individuals accountable for economic mismanagement, emphasizing that addressing economic crimes is key to restoring public confidence in the government’s financial management.
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Samuel Kwame Boadu is a Ghanaian entrepreneur, writer, and digital consultant passionate about creating impactful stories and business solutions. He is the Founder & CEO of SamBoad Business Group Ltd, a dynamic company with subsidiaries in digital marketing, logistics, publishing, and risk management.
