Ghana’s government projects total revenue and grants for 2025 at GH¢223.8 billion (17.2% of GDP), which is an increase from 2024. Total expenditures are set at GH¢269.1 billion (20.7% of GDP), with a projected deficit of GH¢43.8 billion (3.1% of GDP). Financing will include substantial contributions from foreign sources such as the IMF and World Bank.
The Ghanaian government has projected total revenue and grants for 2025 at GH¢223.8 billion, which represents 17.2% of the Gross Domestic Product (GDP), marking an increase from GH¢186.5 billion or 17.4% of GDP from the previous year. This forecast relies heavily on non-oil revenue measures, expected to contribute at least 0.5% of GDP.
During his presentation of the 2025 Budget Statement and Economic Policy to Parliament, Finance Minister Dr. Ato Baah Forson indicated that total expenditures for 2025 would be GH¢269.1 billion, which is 20.7% of GDP, reduced from GH¢279.2 billion or 26.0% of GDP in 2024. Primary expenditures, excluding interest payments, are projected at GH¢204.7 billion, equating to 15.8% of GDP, a notable decrease from GH¢232.4 billion or 21.7% of GDP in 2024.
The minister stated that total appropriations for the fiscal year ending December 31, 2025, are set at GH¢290,971,212,435. Based on these revenue and expenditure estimates, the projected overall deficit on a commitment basis is GH¢43.8 billion, or 3.1% of GDP, while the primary balance reflects a surplus of GH¢20.3 billion or 1.5% of GDP.
On a cash basis, the overall balance indicates a deficit of GH¢56.9 billion, which is equivalent to 4.1% of GDP. The cash-based primary balance surplus is projected at GH¢7.3 billion, or 0.5% of GDP, with the cash deficit anticipated to be financed through both foreign and domestic sources. Total foreign net financing is expected at GH¢21.4 billion (1.5% of GDP), including IMF Extended Credit Facility disbursements of $720 million and World Bank Development Policy Operation funds totaling $600 million.
Finally, the remaining net domestic financing is projected at GH¢36.9 billion (2.6% of GDP), comprising approximately 65% of the total financing for 2025, primarily sourced from short-term debt issuances in the domestic market.
The government of Ghana outlines a detailed financial projection for 2025, with total revenue and grants estimated at GH¢223.8 billion, which is projected to support a deficit of GH¢43.8 billion on a commitment basis. The budget reflects an emphasis on reducing expenditures and maximizing revenue, particularly through non-oil sources, while planning for substantial foreign and domestic financing to manage overall debts effectively.
Original Source: www.ghanabusinessnews.com
