Accounting and auditing firm Deloitte Ghana has stated that while the Mid-Year Budget and Economic Policy presents optimism for a favorable economic outlook, significant areas still require government attention to enhance revenue generation and sustain the initial signs of growth.

According to Deloitte Ghana, the government must intensify domestic revenue mobilization to reduce reliance on borrowing and help bring public debt under control.

The firm made these remarks in its analysis of the Mid-Year Budget Review presented to Parliament by the Minister for Finance, Dr Cassiel Ato Forson.

“Despite the strong performance in Non-Oil Tax Revenue, Corporate Income Tax, and Mineral Royalties, the under-performance in grants, petroleum receipts, and import duties presents risks to achieving the 2025 revenue targets,” it said.

Deloitte Ghana explained that the appreciation of the Ghana cedi, while favorable for price stability, has adversely affected revenue performance in areas such as petroleum receipts and import duties, which are dollar-denominated.

“The Government should either match revenue losses with a commensurate reduction in expenditure or introduce other revenue-enhancing measures to counter the impact of such losses, to ensure we consolidate the fiscal gains recorded in the first half of 2025,” Deloitte Ghana stated.

On economic growth, the firm noted that Ghana’s Gross Domestic Product growth of 5.3 percent in the first quarter of 2025 exceeded both the first quarter 2024 growth rate of 4.9 percent and the 2025 annual target of 4.0 percent, signaling strong momentum.

It attributed this performance largely to the industry sector, which expanded by 6.8 percent, and said the figures indicated that previous investments in the sector were beginning to yield results.

Deloitte Ghana said initiatives such as the 24-Hour Economy Programme could play a vital role in fostering a conducive business environment, driving private sector participation, and promoting inclusive, sustainable growth.

“Going forward, we expect policies like the 24-Hour Economy Programme to be key in creating an environment that will enable the Government to work with the private sector to achieve sustainable economic growth with tangible benefits for Ghanaians,” it said.

The report also pointed to signs of fiscal consolidation, with expenditure performance indicating progress in cost efficiency and waste reduction.

Deloitte Ghana urged the government to prioritize public financial management reforms, including strict enforcement of fiscal rules under the Public Financial Management Act across Ministries, Departments, and Agencies.

It also commended the government’s decision to audit and validate existing arrears before disbursement, noting that this had resulted in 61 percent savings on capital expenditure for the first half of the year.

However, Deloitte Ghana encouraged the government to accelerate reviews and disbursements to prevent project delays, abandonment by contractors, and potential loss of value through theft or deterioration.