Ghana’s government has demonstrated a strong commitment to fiscal discipline, with total spending for the first three quarters of 2025 reaching GH¢175.9 billion, just 12.6 per cent of GDP and 15 per cent below the projected GH¢207 billion. Finance Minister Dr Cassiel Ato Forson attributed the underspending to deliberate restraint, tighter expenditure controls, and improved efficiency in ongoing consolidation efforts.
Excluding interest payments, primary expenditure totaled GH¢133.2 billion, reflecting a 13.6 per cent shortfall as the government limited non-interest spending. Interest payments also fell by 19.2 per cent thanks to lower domestic rates and the strengthening of the cedi, saving nearly GH¢10 billion.
While employee compensation slightly exceeded projections due to wage adjustments and recruitment for essential services, spending on goods and services fell sharply by 24.6 per cent, and energy sector transfers were cut by 21.5 per cent. Capital expenditure reached GH¢10.9 billion, falling 59 per cent short of the target as the government reprioritized projects to focus on high-impact infrastructure amid delayed foreign financing.
Despite the cuts, GH¢11.5 billion in arrears was cleared without creating new liabilities, and social protection initiatives in education, health, and livelihoods remained fully funded. These trends highlight a careful balancing act, showing that Ghana’s fiscal framework can maintain discipline and efficiency while protecting essential services and social programs.
The 2025 spending performance sets the stage for the 2026 budget, reflecting a government focused on recovery, accountability, and sustainable economic growth.
