Budget & E-Levy: The weight of promises and the test of governance

As the Minister of Finance, Ato Forson prepares to present the government's first budget to Parliament tomorrow, the air is thick with anticipation.

For many people, this moment is not just about numbers and fiscal policies; it is a litmus test for trust, accountability, and the integrity of political promises. 

The National Democratic Congress (NDC) government, now at the helm, campaigned vigorously on a platform of economic relief and reform. Among their most resonant pledges was the promise to scrap the controversial E-Levy and other taxes that had become symbolic of the previous administration's fiscal policies. 

Tomorrow, we will begin to see whether these promises were mere rhetoric or a genuine commitment to the people.

The E-Levy, introduced by the previous government, was met with widespread criticism. It was seen as a burden on the ordinary Ghanaian, particularly the youth and small business owners who rely heavily on mobile money transactions.

The NDC, then in opposition, capitalised on this discontent, promising to remove the levy and ease the tax burden on citizens. Now, as the ruling party, they face the daunting task of translating these promises into action. 

Balance 

The question is not just whether they will scrap the E-Levy, but whether they can do so without compromising the nation's fiscal stability. This is where the rubber meets the road in governance—balancing populist promises with economic realities.

Government estimates show that E-Levy is expected to generate GH₵ 2.4 billion in 2025, an increase from GH₵ 2.1 billion budgeted for this year. 

Similarly, the COVID-19 Levy is projected to bring in GH₵ 3.97 billion next year, up from GH₵ 3.1 billion in 2024.

Based on these calculations, the two tax streams are anticipated to contribute an additional GH₵ 1.2 billion in 2025 compared to the 2024 figures.

In the 2025 KPMG pre-budget survey, 80 per cent of the respondents said they believe that the NDC administration’s policy initiatives in the budget could be a major step to economic recovery. However, more than 50 per cent of the respondents called for the scrapping of the E-levy and Covid-19 levy. 

The stakes are high. The government's ability to deliver on its promises will not only shape its popularity but also determine the trajectory of the economy.

A budget that aligns with these aspirations  could restore faith in the political process and set the stage for inclusive growth. Conversely, a failure to act on these key promises could deepen public cynicism and erode trust in the government.

Assurances

On the corridors of power, government officials have been firm in their assurances that the budget will reflect that President John Dramani Mahama was keeping to his 120-day social contract, which include the scrapping of some taxes that were introduced by the previous administration, including E-levy, COVID levy, 10 per cent levy on bet winnings, and Emissions levy.

While we wait with bated breath, one thing is clear: this budget is more than a financial document; it is a statement of intent. It is an opportunity for the NDC government to demonstrate that it is not just a party of opposition rhetoric but a party capable of governing with integrity and vision. 

The people are watching, and history will judge this moment not by the words spoken on the campaign trail, but by the actions taken in the halls of power.

In the end, governance is not just about making promises; it is about keeping them. Tomorrow, we will see if the NDC government is ready to rise to the occasion.