Ghana’s Finance Minister, Dr. Cassiel Ato Forson, presented the much-anticipated 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, 2025, providing a comprehensive assessment of the nation’s fiscal state and economic direction at the halfway mark of the year.
The minister’s message was clear: government finances are stable, no supplementary budget will be needed, and economic reforms are bearing fruit even amid global and domestic challenges.
Key Highlights from the Review
No Request for Additional Funds
Fulfilling prior pledges of fiscal discipline, Dr. Forson firmly stated that the government will not request extra funding beyond the already approved 2025 budget. The 2025 targets for overall GDP growth (4.0%), non-oil GDP growth (4.8%), and year-end inflation (11.9%) remain unchanged. “Mr. Speaker, I am not asking for additional money,” Dr. Forson announced, reinforcing confidence in the current trajectory.
Public Debt Reduction
A notable accomplishment is the reported drop in Ghana’s public debt, which has declined by GH¢113.7 billion—from GH¢726.7 billion at the end of December 2024 to GH¢613 billion by June 2025. As a result, the debt-to-GDP ratio also fell significantly, moving from 61.8% to 43.8%. This development is seen as a positive sign of improving fiscal health and better management of state finances.
Strong Fiscal Performance
Dr. Forson reported a primary budget surplus and deficits that beat their respective targets. The primary surplus was 1.1% of GDP on a commitment basis, outstripping the projected 0.4%. Meanwhile, the overall fiscal deficit was 0.7% of GDP, substantially lower than the 1.8% targeted earlier in the year. Strong expenditure control and a robust performance in tax revenue, especially with non-oil tax receipts and corporate income tax, were emphasized as reasons for this improvement.
Economic Stability and Recovery
The government highlighted several indicators reflecting stabilization:
- Inflation has fallen from 23.5% in January to 13.7% by May 2025.
- The Ghana cedi has appreciated and held steady.
- GDP grew by 5.3% in the first quarter of 2025.
The Minister cited these trends as motivation to maintain, rather than expand, government spending, pointing out that the administration’s policies are translating into tangible macroeconomic gains.
Fighting Waste and Payroll Fraud
In a strong statement against public sector inefficiency, Dr. Forson pledged to address payroll fraud, revealing the discovery of over 53,000 ‘ghost names’ on government payrolls. The administration promised to recover unearned salaries and tighten controls to prevent future abuse.
Collaboration with the IMF
The review also outlined the status of Ghana’s ongoing three-year, US$3 billion IMF programme, which has already delivered US$2.4 billion in support for economic recovery and macroeconomic stability. The Minister reassured stakeholders that government remains committed to reforms under the IMF’s guidance, with an emphasis on protecting vulnerable citizens and maintaining fiscal prudence.
Perspectives from Stakeholders
Business leaders welcomed the stabilizing signals, while urging government to maintain momentum:
- Calls were made for reductions in the monetary policy rate to make business loans more affordable.
- Industry groups pressed for lower VAT and port charges to foster a competitive environment.
Meanwhile, the Bank of Ghana warned of external headwinds—including food supply constraints and global commodity volatility—that could impact future inflation and growth. The IMF’s recent review echoed cautious optimism, hailing comprehensive reforms but urging continued discipline to preserve hard-earned gains.
Looking Ahead
Dr. Ato Forson summed up the government’s approach with cautious optimism, stressing that “although we have made significant progress, we are cautiously optimistic.” The nation’s economic managers are betting on firm adherence to fiscal discipline and careful monitoring of both domestic and external risks.
With the second half of the year ahead, the government’s focus remains on consolidating fiscal stability, completing priority infrastructure, improving revenue collection, and delivering on promises to ordinary Ghanaians.
As Parliament digests the review, all eyes will be on the administration’s ability to keep the economy on this steady course—and ensure the results translate into concrete benefits for citizens and businesses alike.
