Public expenditure for the first seven months of 2025 was maintained under the projected ceiling, signaling stronger fiscal discipline and tighter control over spending.
The Bank of Ghana’s September 2025 Monetary Policy Report revealed that total government outlays amounted to GH¢131.1 billion, representing 9.4 percent of GDP. This compares with a programmed target of GH¢152.6 billion, or 10.9 percent of GDP.
This outcome reflects a 14.1 percent shortfall against the target, though it still marks a 9.3 percent increase compared to the same period last year.
Most major expenditure lines recorded lower-than-expected figures, with the exception of employee compensation. Interest payments declined to GH¢28.9 billion—about 19.5 percent below the GH¢36 billion target—driven largely by falling domestic interest rates and a stronger local currency.
Employee compensation slightly overshot expectations at GH¢44.9 billion, while capital expenditure (CAPEX) dropped significantly to GH¢10 billion, nearly 63 percent below the GH¢22.4 billion projection.
The report highlighted that domestic CAPEX reached GH¢6.6 billion, primarily under the Big Push initiative, while externally funded projects contributed GH¢3.4 billion.
Additionally, arrears clearance stood at GH¢4.8 billion, well below the GH¢8.1 billion target, with no new arrears accumulation—an indication of improved expenditure management and the government’s continued commitment to fiscal consolidation.
Leave a Reply