Ghana’s government expects total revenue and grants for 2025 to be GH¢223.8 billion, with expenditures at GH¢269.1 billion, leading to an overall deficit of GH¢43.8 billion. The budget emphasizes a decline in primary expenditure and indicates a reliance on foreign financing, including substantial support from the IMF and World Bank.
The Government of Ghana has projected total revenue and grants for the year 2025 to reach GH¢223.8 billion. This amount represents approximately 17.2 per cent of the Gross Domestic Product (GDP), which is an increase from the previous year’s projection of GH¢186.5 billion, equivalent to 17.4 per cent of GDP. The increase is based primarily on enhanced non-oil revenue measures estimated to contribute at least 0.5 per cent of GDP.
During the presentation of the 2025 Budget Statement and Economic Policy to Parliament in Accra, Dr. Ato Baah Forson, the Minister of Finance, announced that total expenditures for 2025 are programmed at GH¢269.1 billion, or 20.7 per cent of GDP, showing a decrease from GH¢279.2 billion, or 26.0 per cent of GDP in 2024.
The primary expenditure, which excludes interest payments, is forecasted to be approximately GH¢204.7 billion, constituting around 15.8 per cent of GDP in 2025, marking a notable drop from GH¢232.4 billion, or 21.7 per cent of GDP in 2024. Based on these resources, the total appropriation for the fiscal year ending December 31, 2025, is projected at GH¢290,971,212,435.
The Minister noted that the anticipated overall balance on a commitment basis demonstrates a deficit of GH¢43.8 billion, which equates to 3.1 per cent of GDP. The projected primary balance on a commitment basis shows a surplus of GH¢20.3 billion, or 1.5 per cent of GDP. Conversely, the cash basis indicates an overall balance deficit of GH¢56.9 billion, reflecting 4.1 per cent of GDP, with a corresponding primary balance surplus of GH¢7.3 billion, or 0.5 per cent of GDP.
This cash deficit of GH¢56.9 billion is expected to be funded through both foreign and domestic sources. The total foreign net financing is projected at GH¢21.4 billion, or 1.5 per cent of GDP, which will include funding from the IMF Extended Credit Facility program disbursing $720 million and a World Bank Development Policy Operation providing $600 million.
Furthermore, the net residual domestic financing is forecasted at GH¢36.9 billion, representing 2.6 per cent of GDP and accounting for 65.0 per cent of total financing for 2025, to be acquired largely through short-term debt issuances in the domestic market.
In summary, the Ghanaian government projects total revenue and grants for 2025 at GH¢223.8 billion, while total expenditures are set to be GH¢269.1 billion, reflecting a reduction from the previous year’s figures. The overall budget anticipates a deficit of GH¢43.8 billion based on commitment and GH¢56.9 billion on a cash basis. Funding for these deficits is planned through a combination of foreign and domestic sources, including significant contributions from international financial institutions.
Original Source: www.ghanabusinessnews.com
