The Ghanaian government has projected total revenue and grants for 2025 at GH¢223.8 billion, representing 17.2 percent of GDP. Expenditures are forecasted to decrease to GH¢269.1 billion, indicating efforts to manage fiscal deficits effectively. Provisions for financing include significant contributions from international funding sources and domestic debt issuance.
The Ghanaian government projects total revenue and grants for the year 2025 at GH¢223.8 billion, accounting for 17.2 percent of the Gross Domestic Product (GDP). This represents an increase from the previous year’s projection of GH¢186.5 billion, which was 17.4 percent of GDP. The positive outlook is supported by expected non-oil revenue measures anticipated to contribute an additional 0.5 percent of GDP.
During a presentation of the 2025 Budget Statement in Parliament, Minister of Finance, Dr. Ato Baah Forson, outlined that total expenditures for 2025 are projected at GH¢269.1 billion, which is 20.7 percent of GDP, a decrease from GH¢279.2 billion, or 26.0 percent of GDP, in 2024. He noted that primary expenditure, excluding interest payments, is estimated to reach GH¢204.7 billion in 2025, down from GH¢232.4 billion the preceding year.
For the fiscal year concluding on December 31, 2025, the total appropriation is set at GH¢290,971,212,435. Dr. Forson indicated that the overall balance on a commitment basis is expected to show a deficit of GH¢43.8 billion, or 3.1 percent of GDP, while the primary balance on the same basis is projected to be a surplus of GH¢20.3 billion, equivalent to 1.5 percent of GDP.
On a cash basis, the overall balance is projected as a deficit of GH¢56.9 billion, translating to 4.1 percent of GDP. The primary balance on cash terms is expected to be a surplus of GH¢7.3 billion, representing 0.5 percent of GDP. This cash deficit is anticipated to be financed through both foreign and domestic sources, with foreign net financing estimated at GH¢21.4 billion (1.5 percent of GDP).
The foreign financing includes funds from the IMF Extended Credit Facility program totaling $720 million, along with $600 million from the World Bank’s Development Policy Operation. Domestic financing is projected to be GH¢36.9 billion (2.6 percent of GDP), which will primarily be acquired through short-term debt issuance in the domestic market.
The 2025 budget projections reflect a careful approach to enhancing revenue while managing expenditures. With an anticipated revenue increase to GH¢223.8 billion and a reduction in total expenditures to GH¢269.1 billion, Ghana aims to strategically address its fiscal balance while navigating economic challenges. The expected contributions from foreign financing and domestic debt issuance are pivotal for sustaining fiscal health in the coming year.
Original Source: www.ghanabusinessnews.com
