President John Dramani Mahama’s government is expected to spend a total of GH¢269.1 billion in the first year of office.
Presenting the government’s maiden 2025 Budget and Economic Policy to Parliament on Tuesday, March 11, Finance Minister Dr Cassiel Ato Forson explained that: “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 further explained that based on the estimates for total revenue & grants and total expenditure (commitment), the projected “overall balance on a commitment basis is a deficit of GH¢43.8 billion, equivalent to 3.1 percent of GDP”.
According to him, the corresponding primary balance on a commitment basis is a surplus of GH¢ 20.3 billion, equivalent to 1.5 percent of GDP.
“On cash basis, the 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,” he stated.
Providing insights on how to fund the gap, the finance minister stressed that 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 2025.
This is expected to be sourced from the issuances of debt at the short end of the domestic market.
