The Ghanaian government projects total revenue and grants for 2025 to be GH¢223.8 billion, constituting 17.2 percent of GDP. Total expenditures are forecasted at GH¢269.1 billion. The budget indicates a deficit of GH¢43.8 billion on a commitment basis, while projected foreign financing includes provisions from the IMF and World Bank, complemented by domestic debt issuances.
The Ghanaian government has projected its total revenue and grants for 2025 at GH¢223.8 billion, constituting 17.2 percent of Gross Domestic Product (GDP), a slight decrease from GH¢186.5 billion or 17.4 percent of GDP in 2024. This forecast relies on enhanced non-oil revenue measures expected to contribute approximately 0.5 percent to GDP.
In his presentation of the 2025 Budget Statement and Economic Policy to Parliament in Accra, Minister of Finance Dr. Ato Baah Forson indicated that total expenditures for 2025 are estimated at GH¢269.1 billion, or 20.7 percent of GDP, reduced from GH¢279.2 billion or 26.0 percent of GDP in 2024. He noted that primary expenditure, excluding interest payments, is projected at GH¢204.7 billion, representing 15.8 percent of GDP, significantly down from GH¢232.4 billion or 21.7 percent of GDP the previous year.
Dr. Forson stated the total appropriation for the fiscal year ending December 31, 2025, is GH¢290,971,212,435. He emphasized that the estimated overall balance on a commitment basis shows a deficit of GH¢43.8 billion, equivalent to 3.1 percent of GDP, while the primary balance is projected to yield a surplus of GH¢20.3 billion, or 1.5 percent of GDP.
On a cash basis, the overall balance indicates a deficit of GH¢56.9 billion, translating to 4.1 percent of GDP, with a primary surplus of GH¢7.3 billion, or 0.5 percent of GDP. The cash deficit is anticipated to be financed through both foreign and domestic sources, with total foreign net financing projected at GH¢21.4 billion, representing 1.5 percent of GDP. This includes funding from the IMF’s Extended Credit Facility and the World Bank’s Development Policy Operation.
Domestic financing will constitute the remaining GH¢36.9 billion, or 2.6 percent of GDP, primarily sourced from short-term debt issuances within the domestic market.
Overall, the economic outlook for 2025 reflects a careful balancing of revenue generation and expenditure commitments aimed at fostering a sustainable fiscal environment for Ghana.
In summary, the Ghanaian government projects its revenue and grants for 2025 at GH¢223.8 billion, reflecting a strategic emphasis on non-oil revenue. Although there will be a deficit on both commitment and cash bases, the planned financing through both foreign and domestic avenues appears to be a pragmatic approach to managing the anticipated fiscal challenges. Dr. Ato Baah Forson’s budget presentation shows a commitment to economic prudence and sustainability.
Original Source: www.ghanabusinessnews.com
