The Total Revenue and Grants for 2025 is projected at GH¢223.8 billion or 17.2 per cent of Gross Domestic Product (GDP) up from GH¢186.5 billion or 17.4 per cent of GDP.
The projection is underpinned by non-oil revenue measures, which are expected to yield at least 0.5 per cent of GDP.
Dr Ato Baah Forson, the Minister of Finance, said this when he presented the 2025 Budget Statement and Economic Policy to Parliament in Accra on Tuesday, on the theme: “Resetting the Economy for the Ghana We Want.”
He said total expenditures (commitment) for 2025 had been programmed at GH¢269.1 billion (20.7 per cent of GDP) down from GH¢279.2 billion (26.0 per cent of GDP) in 2024.
Primary Expenditure on a commitment basis (expenditures net of interest payments) is projected at GH¢204.7 billion, representing 15.8 p er cent of GDP in 2025, a significant decline from GH¢232.4, representing 21.7 per cent of GDP in 2024.
He said based on the resource allocations for the fiscal year, the total appropriation for the year ending December 31, 2025, was GH¢290,971,212,435.
“Based on the estimates for total revenue and grants and total expenditure (commitment), the projected overall balance on commitment basis is a deficit of GH¢43.8 billion, equivalent to 3.1 per cent of GDP,” he added.
The corresponding primary balance on commitment basis was a surplus of GH¢ 20.3 billion, equivalent to 1.5 per cent of GDP.
On cash basis, overall balance is a deficit of GH¢56.9 billion, equivalent to 4.1 per cent of GDP.
The Minister said the corresponding primary balance on cash basis was a surplus of GH¢7.3 billion, equivalent to 0.5 per cent of GDP, with the cash deficit of GH¢56.9 billion expected to be financed from both foreign and domestic sources.
The total foreign net financing would amount to GH¢21.4 billion (1.5 per cent of GDP), the Minister said.
Foreign financing would include a provision for financing from IMF Extended Credit Facility programme disbursements of US$720 million and World Bank Development Policy Operation funding of US$600 million.
The residual net domestic financing will amount to GH¢36.9 billion (2.6 per cent of GDP), representing 65.0 per cent of the total financing for 2025.
This is expected to be sourced from the issuances of debt at the short end of the domestic market.
GNA
ABD
11 March 2025
