Fiscal deficit falls to GH¢19.7bn in seven months
By Praisebell Rosemond Larbi
The nation’s overall budget deficit on a cash basis stood at GHS19.7 billion, representing 1.4 per cent of Gross Domestic Product (GDP) for the first seven months of 2025, according to the latest fiscal data from the Bank of Ghana (BoG).
The figure is significantly lower than the targeted deficit of GHS37.8 billion, equivalent to 2.7 per cent of GDP, reflecting continued progress towards the government’s fiscal consolidation objectives under the 2025 Budget and the International Monetary Fund (IMF)-supported programme.
The BoG report noted that the deficit was financed through a mix of domestic and external borrowing. The government raised GHS14.8 billion on a net basis from domestic sources, while net foreign financing amounted to GHS4.9 billion during the period under review.
The government’s primary balance on a cash basis, which excludes interest payments, recorded a surplus of 0.7 per cent of GDP, outperforming the target deficit of 1.0 per cent of GDP.
Similarly, the primary balance on a commitment basis (the fiscal anchor used under the IMF programme) registered a surplus of 1.0 per cent of GDP, compared with a target surplus of 0.5 per cent of GDP.
This performance, according to the Bank of Ghana, underscores the authorities’ continued adherence to fiscal discipline and prudent management of public finances.
The BoG highlighted that the lower-than-expected fiscal deficit is consistent with the government’s budgetary consolidation agenda aimed at restoring macroeconomic stability after years of elevated fiscal imbalances and debt pressures.
The improvement in Ghana’s fiscal metrics comes amid a gradually recovering macroeconomic environment, with inflation easing and the cedi showing signs of relative stability.
The IMF has repeatedly emphasised fiscal consolidation as a critical pillar of Ghana’s economic recovery, urging the government to maintain strict expenditure controls while enhancing domestic revenue mobilisation through tax reforms and efficiency measures.
