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Ishmael Mensah Blog of Friday, 3 January 2025

Source: Ishmael Mensah

GHC20 billion has been set aside for ESLA and IPP interest payments.

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The 2025 Mini-Budget has set aside GHC20 billion for interest payments, including debts to Independent Power Producers (IPPs) and the Energy Sector Levy Account (ESLA), according to Patrick Boamah, the chairman of the finance committee.

The Committee observed that GHC20,691,523,500.00 was the estimated amount for interest payments. During a parliamentary session on the budget approval, Boamah said, "The amount includes payments to the Energy Sector Levy Account (ESLA) and Independent Power Producers (IPPs)."

Finance Minister Dr. Mohammed Amin Adam promised the Joint Committee on Budget and Finance that the postponement would not have a negative effect on government operations, even though the mini-budget was not presented on time.

He underlined that steps had been taken to ensure that public services would continue to run smoothly throughout the changeover.

This comes after the GHC68.13 billion 2025 Mini-Budget was approved by Parliament. Until the new Mahama administration presents a comprehensive budget, the budget is meant to finance government operations for the first quarter of 2025.

Additionally, the authorized spending estimates GHC42.54 billion in total revenue and grants for the first quarter of 2025, or 3.5% of Ghana's GDP.

After much discussion and examination at the Finance Committee level, Parliament approved it. Debt management, revenue collection, and the government's efforts at fiscal consolidation were among the main issues raised during the talks.

During a time of political transition, the 2025 Mini-Budget is an essential instrument for maintaining essential services and stabilizing the economy.