Deloitte Awaits Specifics on Mahama Administration’s 24-Hour Economy Policy
Professional services firm Deloitte has stated that it is awaiting specific details on the 24-Hour Economy policy proposed by the Mahama administration.
During the presentation of the 2025 Budget Statement and Economic Policy to Parliament on Tuesday, March 11, Finance Minister Dr. Cassiel Ato Forson confirmed that the government would formally present the 24-Hour Economy policy to Parliament for approval.
A key initiative of the Mahama-led National Democratic Congress (NDC), the policy seeks to enhance economic productivity by encouraging businesses to operate around the clock. Dr. Forson emphasized its potential to generate employment and drive sustainable economic growth, reiterating the government’s commitment to its implementation.
In its analysis of the 2024 Budget and Economic Statement, Deloitte noted:
“We await specific details on the 24-Hour Economy policy, the use of government procurement to spur local growth, and the ‘Big Push’ strategic infrastructure development program, which aims to allocate $10 billion for infrastructure projects. Another critical issue is Ghana’s current debt status and its impact on overall development.”
Deloitte highlighted that Ghana already has the necessary legal framework to support fiscal responsibility. However, it stressed the importance of stricter enforcement to ensure debt sustainability, particularly in the energy sector, where high debt levels in electricity generation and distribution need urgent resolution.
As part of its economic analysis, Deloitte expressed support for the government’s decision to cut spending, stating that fiscal restraint could help restore investor confidence and macroeconomic stability.
“We support the government’s resolve to be measured in its spending, as this can facilitate the restoration of investor confidence and overall macroeconomic stability,” Deloitte stated in its review.
The firm also pointed out that Ghana’s projected decline in real GDP growth is linked to the government’s fiscal tightening and aggressive expenditure cuts. While these measures may slow economic expansion in the short term, Deloitte acknowledged their necessity in addressing the country’s fiscal challenges.
Looking ahead, Deloitte emphasized the need to reverse high budget deficits—averaging 7.5% between 2021 and 2024—and primary balance deficits to prevent further budget arrears and an increased debt burden, especially given Ghana’s constrained fiscal environment.
The firm further noted that the projected 3.1% GDP deficit for 2025 reflects the government’s prudent approach to fiscal management within the framework of the International Monetary Fund (IMF) Economic Credit Facility program.
Additionally, Deloitte highlighted key fiscal policy changes in the 2025 Budget Statement, including the proposed abolition of several taxes and planned reforms to the Value Added Tax (VAT) system. It welcomed the expected VAT reforms and urged the government to implement them within the year.
The business community, Deloitte added, is also anticipating adjustments to import duties, particularly on production inputs, to support growth and job creation in the economy.
