Ghana Government Projects Total Revenue and Grants for 2025 at GH¢223.8 Billion
The Ghanaian government projects a total revenue and grants of GH¢223.8 billion for 2025. Total expenditures are set at GH¢269.1 billion, reflecting a decrease from previous estimates. A primary balance surplus is expected alongside deficits, which will be financed through foreign and domestic means. The budget focuses on non-oil revenue measures to support these projections.
The Ghanaian government projects the total revenue and grants for the year 2025 to amount to GH¢223.8 billion, representing 17.2 percent of the Gross Domestic Product (GDP). This figure marks an increase from the previous year’s revenue of GH¢186.5 billion, which constituted 17.4 percent of GDP. The forecast relies heavily on non-oil revenue measures anticipated to generate an additional 0.5 percent of GDP.
During the presentation of the 2025 Budget Statement, Dr. Ato Baah Forson, the Minister of Finance, set the total expenditures at GH¢269.1 billion, reflecting 20.7 percent of GDP, a decrease from GH¢279.2 billion, equating to 26.0 percent of GDP in 2024. The primary expenditure, excluding interest payments, is projected at GH¢204.7 billion, which signifies a substantial decline from GH¢232.4 billion (21.7 percent of GDP) in the previous year.
The proposed total appropriation for the fiscal year ending December 31, 2025, amounts to GH¢290,971,212,435. This estimation yields an overall balance deficit of GH¢43.8 billion, or 3.1 percent of GDP. Conversely, a primary balance surplus is expected at GH¢20.3 billion, equivalent to 1.5 percent of GDP.
On a cash basis, the overall balance indicates a deficit of GH¢56.9 billion, reflecting 4.1 percent of GDP. The cash basis primary balance surplus is estimated at GH¢7.3 billion, translating to 0.5 percent of GDP, with the cash deficit projected to be financed through both foreign and domestic resources.
Total foreign net financing is estimated at GH¢21.4 billion, approximately 1.5 percent of GDP, which includes a provision for disbursements from the IMF Extended Credit Facility worth $720 million and World Bank Development Policy Operation funding of $600 million. The remaining net domestic financing is anticipated at GH¢36.9 billion, corresponding to 2.6 percent of GDP and is expected to be obtained from domestic market debt issuances.
In summary, the Ghanaian government anticipates total revenue and grants for 2025 to reach GH¢223.8 billion while projecting expenditures of GH¢269.1 billion. These figures illustrate a strategic shift towards reducing expenditures, with a notable primary balance surplus on both commitment and cash bases. Financing strategies include significant amounts from both foreign and domestic sources to address the forecasted deficits.
Original Source: www.ghanabusinessnews.com
