The Institute of Economic Research and Public Policy (IERPP) has raised concerns over the feasibility and financial implications of the government’s 24-hour economy policy, a key feature of the 2025 Budget.
The think tank, which focuses on social reform and economic management, has called for more transparency regarding the cost and implementation strategy of the initiative.
“Strangely, a precursor of the budget statement failed to provide a clear guide on how much the 3-shift would cost the taxpayer; and how the government would mitigate the liability thereof, regarding paying workers the same wage to undertake the same job,” IERPP stated.
“Neither estimated figures on the possible number of people who would benefit from the policy nor budget lines were provided.”
IERPP further expressed dissatisfaction with the Finance Minister’s failure to outline a detailed financial framework for the initiative.
“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. It clearly shows a lack of thought.”
Beyond concerns over the 24-hour economy, the think tank also highlighted a worrying trend in revenue generation.
“Now, the same line, highlighted that total revenue for 2024 was GH¢186.5 billion, or the equivalent of 17.4% of GDP.
“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.”
The IERPP also pointed out a projected increase in the budget deficit. “Furthermore, on a cash basis, the overall balance is a projected deficit of GH¢56.9 billion, equivalent to 4.1 percent of GDP in 2025. Comparable to 2024, the overall cash budget deficit was GH¢36.1 billion, equivalent to 3.4% of GDP as presented in the 2024 mid-year budget.”
While acknowledging the intent behind the budget, the policy think tank warned against excessive optimism. “While the intent of the budget is to be appreciated, however, we must be cautious with its accompanied pomp and pageantry.”
The 24-hour economy has been presented as a transformative policy by the new administration, promising job creation and increased productivity.
