2025 Budget: Govt spending rises by 16% amid fiscal consolidation concerns

The 2025 fiscal year appropriation has increased by 16% to GHS 290 billion, up from GHS 250 billion in 2024, as outlined in Finance Minister Dr. Cassiel Ato Forson's budget presentation on March 11, 2025.

While the government is focused on fiscal consolidation, it is also ramping up spending on infrastructure, social programs, and debt servicing.

Total expenditure is projected at GHS 269.1 billion (20.7% of GDP), with revenue and grants expected to reach GHS 223.8 billion (17.2% of GDP), driven by tax reforms and compliance measures. The budget deficit is set to narrow to 3.1% of the GDP, down from 3.9% in 2024.

Ghana’s GDP is projected to grow by 4.4%, with non-oil GDP expanding at 5.3%, though achieving the 11.9% inflation target remains a challenge, given 2024’s 23.8% inflation rate.