Government is requesting parliament to approve a total amount of GH¢290,971,212,435 for its expenditure for the year ending 31st December, 2025.
Minister for Finance Dr. Cassiel Ato Forson made the request when he presented the 2025 budget statement and economic policy of John Dramani Mahama’s government to Parliament on Tuesday 11th March 2025.
“Mr. Speaker, based on the resource allocations for the 2025 fiscal year, the total appropriation for the year ending 31st December 2025 is GH¢290,971,212,435,” Dr. Ato Forson announced.
According to him, 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.
He said 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.
“Primary Expenditure on a commitment basis (expenditures net of interest payments)—is projected at GH¢204.7 billion, representing 15.8% of GDP in 2025, a significant decline from GH¢232.4, representing 21.7% of GDP in 2024,” the Finance Minister added.
He said based on the estimates for total revenue & grants and total expenditure (commitment), the projected overall balance on commitment basis is a deficit of GH¢43.8 billion, equivalent to 3.1 percent of GDP.
He added that the corresponding Primary balance on commitment basis is a surplus of GH¢20.3 billion, equivalent to 1.5 percent of GDP.
“On cash basis, Overall balance is a deficit of GH¢56.9 billion, equivalent to 4.1 percent of GDP. The corresponding Primary balance on cash basis is a surplus of GH¢7.3 billion, equivalent to 0.5 percent of GDP.
“Mr. Speaker, the cash deficit of GH¢56.9 billion is expected to be financed from both foreign and domestic sources.
“Total Foreign net financing will amount to GH¢21.4 billion (1.5% of GDP). Foreign financing will include a provision for financing from IMF-ECF programme disbursements of US$720 million and World Bank Development Policy Operation (DPO) funding of US$600 million.
“The residual Net Domestic Financing, will amount to GH¢36.9 billion (2.6% of GDP), representing 65.0 percent of the total financing for This is expected to be sourced from the issuances of debt at the short end of the domestic market,” Dr. Ato Forson concluded.
