Gov’t Aims for GH¢223.8bn Revenue in 2025, but Higher Expenditure Leads to GH¢45bn Deficit—The government has projected to mobilize a total revenue and grants amounting to GH¢223.8 billion, equivalent to 17.2% of GDP.
This projected revenue and grants is a very significant increase from the GH¢186.5 billion mobilized in 2024, which was 17.4% of GDP.
Against this projected revenues, the government has programmed total expenditure (on a commitment basis) at GH¢269.1 billion, amounting to 20.7% of GDP. While this represents a reduction from the GH¢279.2 billion allocated in 2024 (26.0% of GDP), the spending plan still exceeds projected revenue and grants by a staggering GH¢45.3 billion.
Finance Minister, Dr. Cassiel Ato Forson further revealed that primary expenditure, spending excluding interest payments, is estimated at GH¢204.7 billion accounting for 15.8% of GDP.
This marks a considerable decline from GH¢232.4 billion (21.7% of GDP) in 2024, reflecting government efforts to tighten expenditure in the face of economic challenges.
“Mr. Speaker, Total Revenue and Grants for 2025 is projected at GH¢223.8 billion or 17.2% of GDP up from GH¢186.5 billion or 17.4% of GDP. The projection is underpinned by non-oil revenue measures which are expected to yield at least 0.5 percent of GDP. Total Expenditures (Commitment) for 2025 has been programmed at GH¢269.1 billion (20.7% of GDP) down from GH¢279.2 billion (26.0% of GDP) in 2024,” the Finance Minister read on the floor on Parliament on Tuesday.
Despite these expenditure reductions, the budget’s overall fiscal trajectory underscores the persistent challenge of mobilizing sufficient resources to fund government operations and development initiatives.
With revenue growth primarily driven by non-oil revenue measures expected to yield at least 0.5% of GDP, it remains to be seen whether these strategies will be enough to bridge the deficit gap and sustain Ghana‘s economic recovery.
The total appropriation for the year ending December 31, 2025, has been set at GH¢290.97 billion.
As Ghana navigates its economic challenges, the government’s ability to balance revenue generation with prudent expenditure will be critical.
