Ahead of today’s 2025 Mid-Year Budget Review, former Deputy Finance Minister Abena Osei-Asare has sharply criticised the government’s spending priorities, asserting that expenditure is conspicuously absent in areas crucial for economic turnaround.
According to Mrs. Osei-Asare, while the government has maintained salary payments, vital investments in infrastructure and contractor payments, which stimulate economic activity, have largely stalled.
Speaking to JoyNews, the Member of Parliament for Atiwa East acknowledged that some policies implemented in 2024 bore fruit in the first quarter of 2025, contributing to a reduction in inflation figures.
She also noted the successful completion of the latest International Monetary Fund (IMF) review, which led to the disbursement of the third tranche of funds in Q1 2025, providing a boost to forex reserves and easing economic tightness.
However, Ms. Osei Asare quickly pivoted to current concerns, particularly regarding the government’s revenue management and expenditure allocation since March 2025.
She recalled the government’s decision to scrap the E-Levy in March, only to introduce the “Dumsor Levy,” which she described as “substantially higher, way higher than the E-Levy.”
“What we expect to see is how the revenue numbers have fared given all the measures that they put in place in March. Also, we want to see how they have utilised the expenditures,” she stated.
The former Deputy Finance Minister expressed alarm over what she perceives as a consistent lack of funds for critical development.
“Clearly, one thing runs through; I mean, from the questions the ministers come to answer consistently, especially the Roads Minister, there is a lack of funds to pay contractors,” she observed.
She contrasted this with the government’s success in paying public sector salaries: “So yes, government is doing well on the payment of salaries. The government is constantly paying salaries. But as to some of the activities that will turn around the economy, we don’t see the government in that space. That has to do with contractor payments, especially with roads.”
This concern extends to infrastructure projects nationwide.
“We have also noticed that infrastructure projects across the constituencies have all come to a halt because they are not paying contractors,” Ms. Osei Asare emphasised.
She urged the government to outline its plan for making these payments to “bring in more economic activities around.”
Another critical issue highlighted by the MP, particularly vital for traders, is the difficulty in acquiring foreign exchange (forex).
She noted that despite measures like “gold for oil” and other recent interventions that led to a strengthening of the Cedi against foreign currencies, traders are now struggling to find forex.
“Usually with these traders, July, August, September – that’s when they buy forex to go and bring in goods for Christmas, and they are asking for forex and they can’t find forex,” she explained, urging the Finance Minister to address this in the budget review to facilitate the import of goods.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
