Concerns are rising over the government’s ambitious 24-hour economy policy, a centerpiece of the 2025 Budget, as the Institute of Economic Research and Public Policy (IERPP) questions its financial feasibility and lack of transparency.
The think tank, which specializes in social reform and economic management, has called for clearer details on the costs and implementation strategy of the policy.
IERPP criticized the absence of a clear financial breakdown in the budget, particularly regarding the cost of the proposed 3-shift system.
The think tank pointed out that the budget failed to provide essential information on how much the policy would cost taxpayers and how the government plans to address the financial burden of paying workers the same wage for the same job.
“Strangely, a precursor of the budget statement failed to provide a clear guide on how much the 3-shift would cost the taxpayer,” the IERPP noted.
In addition, the think tank expressed frustration with the Finance Minister’s vague explanation of the policy, noting that no specific budget lines or figures were provided.
“All we have been told by the Minister of Finance is that a 24-hour policy would be presented to Parliament. This leaves much to be desired for a government that spent eight (8) years in opposition,” IERPP stated.
Beyond the 24-hour economy, IERPP raised concerns about the overall revenue generation for 2024, warning that it suggests a possible decline in real terms.
The total revenue projection of GH¢186.5 billion, or 17.4% of GDP, signals potential setbacks in Ghana’s revenue growth.
“This clearly shows we are going to retrogress in revenue generation in real terms. This isn’t the promise the Honorable Finance Minister made to the people of Ghana during his vetting,” they argued.
The think tank also highlighted a worrying increase in the projected budget deficit for 2025, which could reach GH¢56.9 billion, or 4.1% of GDP, compared to the GH¢36.1 billion deficit in 2024.
While acknowledging the positive intentions behind the budget, IERPP urged caution, emphasizing the importance of a more grounded approach.
“While the intent of the budget is to be appreciated, we must be cautious with its accompanied pomp and pageantry,” they warned.
The 24-hour economy policy has been presented by the new administration as a transformative plan for job creation and productivity growth.
However, with significant questions around its financial viability, the IERPP’s concerns highlight the need for greater clarity and strategic planning.
