Here are the key highlights from Finance Minister Cassiel Ato Forson’s Mid‑Year Fiscal Policy Review, delivered in Parliament on Thursday, July 24, 2025:
- Improved macro indicators & fiscal outlook
GDP growth reaffirmed at 4.0%, with non‑oil growth at 4.8%; economic momentum remains intact. Inflation continued its downtrend—from 23.8% in December 2024 to 13.7% in June 2025, the lowest since 2021. No supplementary budget was requested; all macro targets (GDP, inflation, reserves, etc.) remain unchanged.
- Fiscal deficit revision
The fiscal deficit target was cut from 3.1% to 2.8% of GDP, thanks to stronger revenue and tighter spending. Mid‑year deficit came in at 1.1%, well under the 2.4% target.
- Debt reduction & borrowing control
Public debt fell from GH¢ 726.7 bn to GH¢ 613 bn (debt-to-GDP: 61.8% → 43.8%)—a historic 15.6% reduction.
Domestic borrowing needs trimmed to GH¢ 59.8 bn (from GH¢ 64.1 bn) owing to improved market conditions.
Treasury bill rates dropped sharply: 91‑day from 27.7% to 14.7%, 364‑day from 29.95% to 15.76%, saving GH¢ 4.9 bn in interest.
- Key expenditures & sector investments
Government confirmed GH¢ 114.5 bn in total spending, with GH¢ 84.2 bn on non–interest public services.
Major outlays include:
US$700 m Eurobond payment
GH¢ 10 bn to domestic bondholders
GH¢ 9.1 bn for energy; GH¢ 5 bn arrears clearance
GH¢ 4.6 bn to GETFund; GH¢ 4.6 bn to NHIS
GH¢ 1 bn to Free SHS; GH¢ 477 m to LEAP; GH¢ 895 m for school feeding
- Reforms & accountability measures
No ghost workers: payroll audit uncovered GH¢ 150 m in unearned salaries to be recovered.
Audit of 55 stalled infrastructure projects; priority given to 24 projects (70% complete) to be finished by 2028.
Sinking funds (cedi and USD) established to meet 2026–2028 debt obligations.
- Inflation‑taming strategy (5‑point plan)
Outlined measures include:
- Aggressive fiscal consolidation
- Exchange rate stability
- Targeted price interventions (utilities, transport)
- Coordination with Bank of Ghana’s monetary policy
- Boosting agriculture to curb food inflation
- Risks & ongoing areas of focus
Customs revenue shortfall (GH¢ 1.6 bn) due to smuggling and fraudulent port practices; AI‑based cargo checks to be deployed.
Banks Assured Of Strong Safety By The Finance Minister
Marine gas oil smuggling and wage pressures remain persistent threats.
The mid-year review projects is a credible turnaround, with lower deficits, falling inflation, shrinking debt, and targeted public spending. The government has taken tangible steps to enhance transparency and complete stalled projects. While macro stability is building, vigilance is still needed on revenue leakages and inflationary pressures.
