Finance Minister to present mid-year budget today
By Praisebell Rosemond Larbi
Minister for Finance, Dr. Cassiel Ato Forson, will present the 2025 Mid-Year Budget Review to Parliament today, July 24, in accordance with national financial laws that require a mid-year assessment of the country’s fiscal and economic performance.
The presentation, which falls under Section 28 of the Public Financial Management Act, 2016 (Act 921), aims to update Parliament and the public on the execution of the national budget and outline revised fiscal strategies for the second half of the year.
The mid-year review is also backed by the Financial Administration Act, which mandates the Finance Minister to assess revenue generation, public spending, debt sustainability, and to provide revised targets and policy directions based on current economic realities.
This year’s review is expected to highlight signs of a strengthening economic recovery, backed by recently released data from the Bank of Ghana.
According to the central bank, real GDP expanded by 5.3 percent in the first quarter of 2025, driven by robust growth in the agriculture and services sectors. Non-oil GDP also rose by 6.8 percent, signaling broad-based economic growth.
Additionally, the Composite Index of Economic Activity recorded a 4.4 perecent year-on-year increase in May, while recent Purchasing Managers’ Index (PMI) readings suggest rising business and consumer confidence.
Private sector dynamics have improved significantly, with private sector credit growth reaching 19.9 percent in April up from 10.8 percent a year earlier, while the contraction in real credit has narrowed, indicating stronger liquidity conditions in the financial sector.
The review is expected to highlight Ghana’s solid external position, supported by strong commodity exports, with a provisional trade surplus of USD5.6 billion recorded in the first half of 2025, driven largely by strong performances in gold and cocoa.
Additionally, the current account surplus widened to USD3.4 billion, reflecting robust foreign inflows and an improved balance of payments.
Revenue, Expenditure, and Fiscal Strategy
Dr. Ato Forson is expected to provide a detailed account of revenue mobilization in the first half of the year and whether Ghana is on track to meet its full-year fiscal targets.
The review will also explore revisions to expenditure priorities particularly in social services, infrastructure, and debt servicing as well as adjustments to tax measures and public sector reforms in response to evolving economic challenges.
IMF Programme and Reform Commitments
Another key highlight of the presentation will be an update on Ghana’s progress under the International Monetary Fund (IMF) program, with emphasis on the government’s commitment to meeting performance benchmarks, progress on fiscal consolidation, and reforms in public financial management and state-owned enterprises.
Amid rising cost-of-living concerns and political pressure on government spending, stakeholders are closely watching for announcements on cost-saving measures, public sector wage management, support for SMEs, and social protection initiatives.
Parliament is also expected to scrutinize the fiscal implications of recent policy decisions, including the abolition of fuel allowances for political appointees and investments in mining sector reform.
