The Ghanaian government projects total revenue and grants for 2025 at GH¢223.8 billion, supported by non-oil revenue measures. Expenditures are expected to be GH¢269.1 billion, resulting in an overall deficit of GH¢43.8 billion. Financing strategies include foreign sources such as IMF and World Bank funds, complemented by domestic debt issuances.
The Ghanaian government forecasts total revenue and grants for 2025 to reach GH¢223.8 billion, approximately 17.2% of the Gross Domestic Product (GDP), marking a rise from GH¢186.5 billion or 17.4% of GDP the previous year. This estimate relies on non-oil revenue initiatives anticipated to contribute an additional 0.5% of GDP.
Dr. Ato Baah Forson, Ghana’s Minister of Finance, presented the nation’s budget on the theme “Resetting the Economy for the Ghana We Want” during a session in Parliament, noting total expenditures for 2025 are set at GH¢269.1 billion or 20.7% of GDP, a decrease from GH¢279.2 billion or 26.0% of GDP in 2024.
Projected primary expenditure, which excludes interest payments, is to be GH¢204.7 billion, constituting 15.8% of GDP in 2025, a decline from GH¢232.4 billion or 21.7% of GDP in 2024. The total appropriation for the fiscal year concluding on December 31, 2025, is estimated at GH¢290,971,212,435.
The anticipated overall balance indicates a deficit of GH¢43.8 billion, representing 3.1% of GDP, with a corresponding primary balance yielding a surplus of GH¢20.3 billion or 1.5% of GDP. On a cash basis, the overall balance projects a deficit of GH¢56.9 billion or 4.1% of GDP, and the primary balance on cash terms reflects a surplus of GH¢7.3 billion or 0.5% of GDP.
The Minister elaborated that the cash deficit, totaling GH¢56.9 billion, would be financed through both foreign and domestic sources. Total foreign net financing is projected at GH¢21.4 billion, which accounts for 1.5% of GDP. This includes expected disbursements of $720 million from the IMF Extended Credit Facility and $600 million from World Bank Development Policy Operations. The remaining net domestic financing, amounting to GH¢36.9 billion or 2.6% of GDP, will primarily come from issuances of short-term debt in the domestic market.
The government of Ghana has laid out a comprehensive financial projection for 2025, aiming for total revenue and grants of GH¢223.8 billion and overall expenditures of GH¢269.1 billion. The anticipated deficits and financing strategies signal a focused approach to economic management, balancing both foreign and domestic sources of funding to support growth and sustainability within the nation’s budgetary framework.
Original Source: www.ghanabusinessnews.com
