2025 Budget: Dr. Mohammed Urges Finance Minister to Prioritize Efficient-Based Budgeting for Economic Growth

A senior lecturer at the University of Ghana Business School, Dr. Jabir Ibrahim Mohammed, has urged Finance Minister Cassiel Ato Forson to adopt efficient-based budgeting instead of activity-based budgeting ahead of the 2025 budget slated for the 11th of March.

Speaking in an interview with Joy News on Friday, February 28, Dr. Mohammed stressed that the Finance Minister invests in other sectors of the economy to ensure there is efficient spending to create jobs and reduce unemployment.

“What measures are we putting in place to ensure that we have efficiency in our spending? I am more interested in the efficiency of spending, knowing that when you spend on this sector, let’s say if you place 2% in agriculture, what is the resultant impact it will have on job creation? So this is what I’m more interested in.”

“Let’s not just do activity-based budgeting but rather efficient-based budgeting, so that when we put monies here, it gives you an output at this element,” he said.

Dr. Mohammed said this approach will ensure that government spending is optimized, leading to increased revenue savings.

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He emphasized that revenue mobilization can be boosted not just by cutting costs or reducing the number of government appointees but by increasing output, noting that this macroeconomic principle has the potential to ease the stress on the economy.

“I expect the Finance Minister to look at efficiency spending holistically and ensure that we connect to sectors of the economy.”

After knowing the State of the Nation, Dr. Mohammed stressed that the Finance Minister should focus on growing the economy from within.

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He said this can be achieved by promoting interlinked spending between sectors of the economy.

“So for instance, at Free Senior High School, we should be able to connect it to industry; we should be able to connect it to the agricultural sector; we should be able to connect to health. So let’s connect our spending that way so that we spend within, then the economy grows within.”