2025 budget bold and ambitious – Kofi Pianim
The Head of Global Markets at First National Bank, Kofi Pianim, has described the 2025 financial budget under President Mahama’s administration as "relatively impressive," while raising concerns about arrears accumulation, transparency, and auditing.
Speaking on Graphic Business X Dialogue about the budget’s impact on individuals and businesses, Mr Pianim acknowledged that the revenue projections were ambitious but stressed the need for clarity on certain aspects of its implementation.
"There are grey areas, probably around arrears accumulation, how it will be dealt with, and the transparency and auditing of arrears. But if you take that away and look at just the funding requirements and revenue projections, they are bold. I think an increase of about GH¢40 billion is ambitious, but the market conditions are conducive for growth," he stated.
Positive market indicators and liquidity
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Mr Pianim highlighted encouraging signs in the interbank market, such as a drop in Treasury bill yields, suggesting sufficient liquidity in the banking sector, pension funds, and ordinary Ghanaian savings to support the budget.
He noted that Treasury bills are now being oversubscribed, with excess liquidity chasing other assets, leading to lower returns.
On monetary policy, he praised the Bank of Ghana’s interventions, stating that they are now more aligned with market conditions, ensuring the efficient use of foreign exchange reserves.
Impact on businesses and price stability
Mr Pianim said the 2025 budget creates a more enabling environment for businesses, particularly within the corporate, commercial, and SME sectors, by improving access to credit. He noted that this could contribute to greater price stability in key areas such as school fees and utility bills.
"It also gives us a little bit of calmness because prices will not be changing so rapidly—whether it is school fees or bills, everything will be moderated," he added.
While expressing confidence in the government’s approach to fiscal management, Mr Pianim remained cautiously optimistic, stating that he does not want to celebrate too quickly but has trust in what the government aims to achieve.