The Ghana government has projected total revenue and grants for 2025 at GH¢223.8 billion, representing 17.2% of GDP, supported by non-oil revenue. Total expenditures are anticipated at GH¢269.1 billion, down from the previous year. The overall balance indicates a commitment deficit of GH¢43.8 billion, with foreign and domestic financing measures outlined for managing the cash deficit of GH¢56.9 billion.
In the projection for 2025, the Ghanaian government anticipates total revenue and grants to reach GH¢223.8 billion, accounting for 17.2% of the Gross Domestic Product (GDP). This reflects an increase from the previous year’s figure of GH¢186.5 billion, which was 17.4% of GDP. The projection relies heavily on non-oil revenue measures expected to contribute an additional 0.5% to GDP.
During the presentation of the 2025 Budget Statement and Economic Policy, Dr. Ato Baah Forson, the Minister of Finance, revealed that total expenditures for the year are expected to be GH¢269.1 billion, or 20.7% of GDP, a decrease from GH¢279.2 billion, which represented 26.0% of GDP in 2024. The primary expenditure, excluding interest payments, is projected at GH¢204.7 billion, equating to 15.8% of GDP, marking a notable decline from GH¢232.4 billion, or 21.7% of GDP, from the preceding year.
Dr. Forson outlined that the total appropriation for the fiscal year ending December 31, 2025, will be GH¢290,971,212,435. According to the estimates, the overall balance, on a commitment basis, is projected to reflect a deficit of GH¢43.8 billion, which constitutes 3.1% of GDP. Additionally, the primary balance on a commitment basis indicates a surplus of GH¢20.3 billion or 1.5% of GDP.
On a cash basis, the government expects an overall deficit of GH¢56.9 billion, translating to 4.1% of GDP. The Minister noted that the corresponding primary balance in cash terms would result in a surplus of GH¢7.3 billion, or 0.5% of GDP. The anticipated cash deficit of GH¢56.9 billion is expected to be financed through foreign and domestic channels.
The overall foreign net financing is estimated at GH¢21.4 billion, making up 1.5% of GDP, which includes provisions for funding from the IMF Extended Credit Facility programme and World Bank Development Policy Operations. The remaining net domestic financing is projected at GH¢36.9 billion, or 2.6% of GDP, primarily derived from short-term debt issuances in the domestic market.
The Ghanaian government projects a total revenue and grants figure of GH¢223.8 billion for 2025, alongside a strategic decrease in total expenditures to GH¢269.1 billion. The budget reflects a focus on managing the deficit responsibly while enhancing funding from both foreign and domestic sources. The projections indicate a balanced approach towards fiscal sustainability in the coming year.
Original Source: www.ghanabusinessnews.com
