The Ghanaian government has projected GH¢223.8 billion in Total Revenue and Grants for 2025, representing 17.2% of GDP, an increase from GH¢186.5 billion (17.4% of GDP) in 2024. This growth is expected to be driven by non-oil revenue measures, which are anticipated to contribute at least 0.5% of GDP.
Delivering the 2025 Budget Statement and Economic Policy to Parliament on March 11, Finance Minister Dr. Cassiel Ato Forson outlined the government’s financial projections under the theme: “Resetting the Economy for the Ghana We Want.”
Expenditure and Fiscal Strategy
The government has reduced total expenditures (commitments) to GH¢269.1 billion (20.7% of GDP) in 2025, compared to GH¢279.2 billion (26.0% of GDP) in 2024. Similarly, primary expenditure (excluding interest payments) is expected to drop from GH¢232.4 billion (21.7% of GDP) in 2024 to GH¢204.7 billion (15.8% of GDP) in 2025.
The total appropriation for the fiscal year ending December 31, 2025, has been set at GH¢290.9 billion.
Despite revenue improvements, the government anticipates a fiscal deficit of GH¢43.8 billion (3.1% of GDP) on a commitment basis. On a cash basis, the deficit is projected at GH¢56.9 billion (4.1% of GDP).
Deficit Financing Strategy
To bridge the funding gap, the government will rely on foreign and domestic sources:
- Foreign net financing will amount to GH¢21.4 billion (1.5% of GDP), with contributions from the IMF Extended Credit Facility (US$720 million) and the World Bank Development Policy Operation (US$600 million).
- Domestic financing will contribute GH¢36.9 billion (2.6% of GDP), making up 65% of total financing for 2025, mainly through short-term domestic debt issuances.
The government’s strategy reflects a fiscal consolidation effort, balancing revenue growth with controlled expenditure while ensuring sustainable debt management.
