2025 Mid-Year Budget Review: Full Text

2025 Mid-Year Budget Review: Full Text

What We Met

Ghana faced severe economic challenges marked by large fiscal imbalances, unsustainable debt, institutional weaknesses, and eroded public trust. Key issues included:

 

• Massive Debt & Fiscal Risks: Soaring government debt led tostate insolvency, with significant arrears of GH¢67 billion due to reckless spending and contract commitments of over GH¢194 billion. The cocoa and energy sectors were heavily indebted, posing major fiscal threats.
• Economic Mismanagement: Reckless spending, corruption, and weak fiscal controls caused aballooning budget deficit. The Domestic Debt Exchange Programme (DDEP) inflicted heavy losses on pensioners, the middle class, and Eurobond holders.
• Currency Collapse & Inflation: TheGhana Cedi became the world’s worst-performing currency, driving up living costs and eroding incomes and savings.
• Sectoral Breakdown:
• Energy sectorhad an excess of $1.5 billion annual shortfall.
• Cocoa sectorliabilities ofGH¢32 billion.
• State-owned enterpriseshad paralyzed balance sheets.
• Financial sectorremained weak despite aGH¢30 billion cleanup, with high non-performing loans.
• Credit Downgrades: Ghana wasdowngraded to junk/default status by all major rating agencies, the first in its history.
• IMF Programme Failure: TheIMF program derailed by 2024, missing key targets and jeopardizing Ghana’s recovery.
• Unemployment & Business Collapse: Joblessness rose, and manyMSMEs collapsed due to economic instability.
• Upcoming Debt Burdens: Looming Heavy repayments (e.g.,GH¢3 billion in 2027), alongside $3 billion in stalled projects due to bilateral debt restructuring.

 

The crisis stemmed from reckless spending, corruption, and poor leadership under the previous administration, leading to fiscal dominance, monetary instability, and a lack of coordination between the Finance Ministry and Bank of Ghana.

 

 

 

What Government Did Differently

Summary of Government’s Economic Reforms (Post-2023)

The new administration implemented bold corrective measures to stabilise Ghana’s economy, focusing on fiscal discipline, social investment, and institutional coordination. Key actions include:

 

Renewed Social Contract & National Priorities:

• HeldNational Economic Dialogue and Education Forum to redefine policies.
• Engaged directly withmarket women, trade unions, youth groups, and traditional leaders.

Strict Fiscal Discipline & IMF Approval:

• Tightened spendingwhile protecting social investments.
• TheIMF praised the government’s “bold corrective actions” to keep the economic program on track, projecting stability, resilience, and inclusive growth.

Strategic Investments:

• Increased funding foreducation, health, agriculture, infrastructure, and job creation.
• Established theGhana Gold Board (Act 1140) to boost forex reserves and stabilise the Cedi.

Restored Economic Coordination:

• Improved collaboration between theFinance Ministry and Bank of Ghana for cohesive policymaking.

Results in 200 Days:

• Clarity, stability, and economic recoveryare now evident. Tangible progress is being felt across sectors.

 

The government’s new economic model has set Ghana on a path to recovery, with IMF-backed reforms, disciplined spending, and inclusive growth strategies showing early success.

 

 

 

Significant Gains Made So Far

Key Fiscal & Economic Improvements:

 

 Strong Fiscal Performance:

• Primary balance surplus of 1.1% of GDPbeating a target go4%
• Fiscal deficit reduced to 0.7% of GDPoutperforming a target of8%

Declining Inflation & Interest Rates:

• Inflation dropped from 23.8% (Dec 2024) to 13.7% (June 2025), lowest since 2021.
• Treasury bill rates fell sharply(91-day T-bill down from 27.73% to 14.73%).

Rebuilding Reserves & Currency Strength:

• Gross International Reserves rose to$12 billion (4.8 months of import cover) from $8.98 billion in Dec 2024.

Historic Cedi appreciation:

• Cedi appreciated 6% agist the USD, 30.3% against the British Pound and 25.6% against the Euro (reversing 2022-2024 depreciation).
• Biggest currency rebound in 60 years.

Restored Investor Confidence:

• Fitch Ratings upgraded Ghana from Restricted Default to B Minus (Stable Outlook).
• Ghana’s IMF program is back on track with 4th review approved, triggering$370M disbursement.

 

Ghana’s economy is stabilizing fast, with strong fiscal discipline, falling inflation, a stronger Cedi, and renewed global confidence. The government vows to maintain reforms for long-term growth.

 

Macroeconomic Performance (Jan-June 2025)

Under disciplined economic management, Ghana made strong progress in H1 2025 toward its recovery goals.

 

Growth Targets Set for 2025:

• Real GDP growth of at least 0%
• Non-Oil related GDP growth of at least 8%
• End of Year inflation rate of 9% (down from 13.7% in June)
• Fiscal surplus:5% of GDP (primary balance)
• International Reserves buffer covering months of imports(already exceeded at 8 months).

 

 

 

Real Sector Performance (Q1 2025) 

• GDP growth surged to 5.3%up from 4.9% in Q1 2024, highest Q1 growth since 2020.
• Non-oil GDP grew at 6.8%compared to4.3% in Q1 2024, marking the fastest pace since 2018.

 

Sectoral Breakdown:

 

Agriculture (6.6% growth)

• Tripledits Q1 2024 growth rate, contributing4% to overall GDP expansion.
• Fishing sub-sector boomed at 16.4%.

Services (5.9% growth)

• Largest economic sector (46.8% share), driving9% of GDP growth.
• ICT led with 13.1% growth.

Industry (3.4% growth)

• Contributed6% to GDP growth, withmanufacturing up 6.6%.

 

 

New Policies Boosting Momentum:

• 24-Hour Economy Policy
• Big Push Programme
• Agriculture for Economic Transformation Programme

 

Projection: GDP growth is on track to exceed the 2025 target of 4%, with sustained momentum expected.

 

 

 

Price Developments

• Fiscal Consolidation: Reduced deficit and borrowing
• Exchange Rate Stabilization: Curbed imported inflation (fuel, food, transport)
• Targeted CPI Policies: Focused on high-impact sectors (transport, utilities)
• Monetary Tightening: BoG’s liquidity management supported disinflation
• Agricultural Transformation: Boosted food supply to lower prices

 

 

Inflation Category	Dec 2024	Jun 2025	Percentage Point Change	% Reduction
Consumer Price Inflation	23.8%	13.7%	-10.1	-42.4%
Producer Inflation	26.1%	5.9%	-20.2	-77.4%
Food Inflation	27.8%	16.3%	-11.5	-41.4%
Non-Food Inflation	20.3%	11.4%	-8.9	-43.8%
Locally Produced Goods	26.4%	14.0%	-12.4	-47.0%
Imported Goods Inflation	18.0%	12.5%	-5.5	-30.6%

 

 

Drivers of Success:

• Strong fiscal discipline
• Tight monetary policy
• Cedi appreciation & reserves buildup

 

Outlook:

2025 Inflation Target of 11.9% likely to be achieved ahead of schedule.

 

 

 

Interest Rate Movements (Dec 2024 – June 2025)

 

Key Declines

 

Interest Rate Indicator	December 2024	June 2025	Change (Percentage Points)	% Reduction
91-day Treasury Bill Rate	27.70%	14.70%	-13.00	-46.9%
182-day Treasury Bill Rate	28.43%	15.34%	-13.09	-46.0%
364-day Treasury Bill Rate	29.95%	15.76%	-14.19	-47.4%
Average Lending Rate	30.30%	27.00%	-3.30	-10.9%
Ghana Reference Rate	29.31%	24.00%	-5.31	-18.1%

 

 

Impact:

GH¢4.9 billion saved in domestic interest payments between Jan-Jun 2025 due to prudent debt management.

 

 

 

Fiscal Performance First Half of 2025

Key Achievements:

• Strong Fiscal Discipline – Outperformed deficit and surplus targets
• Robust Revenue & Spending Control – Lower expenditures, higher savings
• Reduced Borrowing & Interest Costs – Significant debt service savings

 

Fiscal Metrics (June 2025) vs. Targets

Indicator	Actual	Target	Outcome
Primary Balance (Commitment Basis)	+1.1% of GDP	+0.4% of GDP	Surpassed
Overall Fiscal Deficit (Commitment)	-0.7% of GDP	-1.8% of GDP	Better
Overall Fiscal Deficit (Cash Basis)	-1.1% of GDP	-2.4% of GDP	Better
Primary Balance (Cash Basis)	+0.7% of GDP	-0.2% of GDP	Surpassed with Surplus

 

 

 

 

Expenditure & Savings Highlights

 

Expenditure Metric	Actual (Jun 2025)	Target	Savings
Total Expenditure (GH¢)	109.7 billion	128.0 billion	18.3 billion

 

 

Non-Interest Expenditures

 

Primary Expenditure Metric	Actual (Jun 2025)	Target	Savings
Amount (GH¢ billion)	84.3	97.5	13.2

 

 

• Interest Payments: GH¢25.4B (1.8% of GDP)
• Domestic Interest Savings: GH¢4.9B below target
• Cleared Arrears: GH¢4.8B cleared with no new arrears accumulated

 

Investor Confidence Boost

• Borrowed Less Than Planned: Demonstrates strong fiscal credibility
• Sustained Fiscal Consolidation: Key driver for economic recovery

 

 

 

Exchange Rate Stabilisation Measures & Results

 

Key Policies Driving Cedi Stability:

• Ghana Gold Board: Boosting forex reserves through gold revenues
• Fiscal Consolidation: Reduced spending and deficits to ease pressure on the Cedi
• FX Forward Auctions: Central Bank interventions to stabilize the currency
• 24-Hour Economy & Export Drive: Boosting local production and cutting import reliance

 

Key Milestone:

• Reversed nearly all 2022–2024 depreciation
• Strongest Cedi rebound in Ghana’s history

 

 

Cedi’s Historic Turnaround (June 2025 vs. 2024)

Currency	Exchange Rate (GH¢)	Appreciation (2025)	Depreciation (2024)
US Dollar	10.4 (from 17.0)	42.6%	-18.6%
British Pound	14.0 (from 21.0)	30.3%	-17.9%
Euro	–	25.6%	-16.0%

 

 

 

Payroll Audit Update 2025

 

Key Findings:

• 91% of audit completed- Significant progress in payroll verification
• 14,000+ workers unverified- Potential “ghost workers” identified
• 53,311 separated staff still on payroll- Includes: Retirees, terminated, deceased etc.
• GH¢4 million in expected recoveries- Unearned salaries from 2023-2024 to be reclaimed

 

 

 

Next Steps & Warnings:

• Monthly Payroll Validation: Stricter checks to prevent fraud
• Sanctions for Validators: Officials approving “ghost” salaries held personally liable

 

 

Public Debt

 

Comparing Ghana’s public debt metrics between December 2024 and June 2025:

Debt Indicator	Dec 2024	Jun 2025	Change	% Change
Total Public Debt (GH¢)	726.7 billion	613.0 billion	-113.7 billion	-15.6%
Debt-to-GDP Ratio	61.8%	43.8%	-18.0 percentage points	-29.1%
Foreign Debt Share	57.4%	49.0%	-8.4 percentage points	-14.6%

 

 

 

 

Key Improvements:

• First-evernegative debt accumulation (-15.6%)
• 18 percentage point dropin debt-to-GDP ratio
• Significantreduction in foreign currency exposure
• Reflects successfulfiscal consolidation and debt management

 

Debt Restructuring Progress

 

• Official Creditor Committee (OCC) Deal:
  • MoU terms approved (June 2025)
  • 2 bilateral agreements ready for signing
  • 4 more expected by July 2025

 

• Debt Servicing (Jan-Jun 2025):
• Eurobond payments:$700M
• DDEP bondholders: GH¢8B coupons(GH¢3.6B capitalised)
• Non-tendered bonds:GH¢1.1B (cleared 2024 arrears)

 

• Upcoming (Jul-Dec 2025):
  • GH¢10.2B (DDEP coupons)
  • GH¢724.1M (non-tendered bonds)

 

Government Commitment:
Adequate provisions made to meet all 2025 debt obligations and beyond.

 

EXCHANGE RATE DEVELOPMENTS

Government implemented measures to stabilize the exchange rate:

• establish the Ghana Gold Board to enhance foreign exchange generation to support the cedi
• pursue strong fiscal consolidation through reduced public spending and fiscal deficit to support the cedi
• implement appropriate FX forward auctions to support Cedi stability and
• implement the 24-Hour Economy and Accelerated Export Development Programme to reduce reliance on imports

These deliberate policies announced in the 2025 Budget are yielding massive results. The Ghana Cedi experienced significant appreciation against all major trading currencies in the first six months of 2025:

• From GH¢17.0 to GH¢10.4 against the US Dollar
• From GH¢21.0 to GH¢14.0 against the Great British Pound
• By end-June 2025: appreciated 42.6% against USD, 30.3% against GBP, and 25.6% against Euro

 

Key outcomes from these interventions include:

• Ghana achieved unprecedented Cedi appreciation, reversing nearly all currency depreciation from 2022-2024 – a historic first for the nation
• The recovery stems from comprehensive reforms including tight monetary policy, improved external balances, renewed investor confidence, positive market sentiment, credit rating upgrades, and successful IMF programme implementation
• The Cedi’s rebound signals that Ghana’s economic foundations are strengthening and stabilizing once again
• Sustaining this stability requires continued fiscal discipline, supportive monetary policy, effective liquidity sterilization, robust reserve accumulation through GoldBod activities, and credible structural reform implementation.

 

EXTERNAL SECTOR PERFORMANCE

• Gross International Reserves reached US$11.12 billion by June 2025, covering 4.8 months of imports, up from US$8.98 billion (4 Months of Imports) in December 2024
• Trade surplus increased from US$1.65 billion in June 2024 to US$4.93 billion in June 2025 (200% increase)
• Driven by strong exports, particularly in gold and cocoa
• Current account surplus improved to US$2.97 billion by June 2025, from US$283.11 million in June 2024
• Net capital and financial inflows reached US$792.12 million in June 2025, indicating renewed investor confidence.

 

 

 

RECAPITALIZATION OF NATIONAL INVESTMENT BANK (NIB)

 

Despite the previous NPP administration spending GH¢30.3 billion on financial sector reforms, the National Investment Bank was left in critical condition with a Capital Adequacy Ratio of negative 53.13% by end-2024.

We have taken the following steps:

• Injected GH¢450 million in cash
• Issued marketable bonds worth GH¢1.5 billion to NIB
• Transferred GH¢500 million Government shares in Nestle Ghana Ltd to NIB
• Improved Capital Adequacy Ratio from negative 53.13% to positive 23% in May 2025

 

 

These major steps ensured:

• Preserved depositor funds valued at GH¢6.4 billion
• Saved over 900 direct jobs at NIB
• Preserved an indigenous Ghanaian bank

 

Unlike the previous administration, we chose to invest in saving the bank rather than spending to collapse it. We have also prepared a comprehensive Forward-Looking Restructuring Plan to place the National Investment Bank on a sustainable path to profitability with enhanced board independence, strengthened risk management, and improved accountability and transparency.

 

This plan will: strengthen corporate governance frameworks; improve enterprise risk management and controls; establish a modern business model; revamp operational strategy; enhance financial performance; institute enhanced supervisory measures; and eventually list NIB on the Ghana Stock Exchange.

 

With total Paid-Up capital of GH¢3.4 billion and a Capital Adequacy Ratio of 23%, NIB is now back, liquid, safe, and fully capitalized. We encourage everyone to do business with the revitalized National Investment Bank.

 

 

CREDIT RATING UPDATES

On June 16, 2025, Fitch Ratings upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating from ‘Restricted Default’ to ‘B-‘ with a stable outlook – the first upgrade since 2021. Fitch highlighted significant exchange rate appreciation, declining debt levels, strong nominal GDP growth, increased reserve accumulation, and normalized relations with external creditors as the key factors driving this improvement.

 

 

 

FISCAL REFORMS

1. VAT REFORMS

The Ministry of Finance to prepare new VAT bill by October 2025 for 2026 Budget.

New VAT reforms will:

• Abolish COVID-19 Levy
• Reduce effective VAT rate
• Remove punitive cascading effect of GETFund and NHIS levies
• Remove VAT flat rates and implement unified VAT rate
• Increase VAT registration threshold to exempt small and micro businesses
• Improve compliance through public education and introduction of fiscal electronic devices

 

 

 

1. EXPENDITURE

UPDATE ON PAYROLL AUDIT

The Ghana Audit Service has completed 91% of the payroll audit with the following findings:

• Over 14,000 workers could not be identified or verified, and 53,311 separated staff (retired, resigned, terminated, on leave without pay, or deceased) remained on the government payroll.
• The Audit Service expects to recover GH¢150.4 million in unearned salaries paid to separated staff during 2023-2024.
• Monthly payroll validation processes will be enforced with strict sanctions applied to officials who validate “ghost” workers for salary payments.
• The Finance Minister has warned that those who validate “ghosts” across the public service will be held personally liable for public fund losses.

 

UPDATE ON AUDIT OF ARREARS, PAYABLES, AND COMMITMENTS

The Ghana Audit Service partnered with EY and PWC to audit GH¢68.7 billion in arrears, with 87% of the audit completed. Preliminary results show:

• GH¢28.3 billion validated for payment
• GH¢3.6 billion rejected due to errors, duplications, and non-compliance
• GH¢562.6 million lacked adequate supporting documents
• GH¢27.3 billion remains pending validation

 

 

UPDATE ON IMF PROGRAMME

• The IMF Executive Board approved the 4th Review on July 7, 2025, unlocking a US$370 million disbursement and bringing total disbursements to US$2.3 billion. The 5th Review is scheduled for September 2025 based on end-June 2025 data, with preliminary data showing Ghana is on course to achieve most targets.

 

PUBLIC DEBT DEVELOPMENTS

• Ghana’s public debt reduced from GH¢726.7 billion (end-December 2024) to GH¢613 billion (end-June 2025) – a reduction of GH¢113.7 billion in six months due to commitment to fiscal discipline, prudent debt management, and exchange rate appreciation, marking the first time in Ghana’s history with a negative 15.6% rate of debt accumulation.
• The public debt-to-GDP ratio improved significantly from 61.8% at end-2024 to 43.8% by end-June 2025 – an 18% reduction in six months.
• Foreign debt as a percentage of total public debt declined from 57.4% (end-December 2024) to 49% (end-June 2025), significantly improving Ghana’s debt sustainability.

 

 

UPDATE ON DEBT RESTRUCTURING

• On June 24, 2025, Parliament approved the indicative terms of the Memorandum of Understanding (MoU) between Ghana and the Official Creditor Committee (OCC). We are ready to sign agreements with two countries, with four agreements expected to be signed by end-July 2025.
• In line with Government’s strong commitment to honoring debt service obligations, we made debt service payments of approximately US$700 million to Euro bondholders during the first half of 2025.
• For the first half of 2025, a total of GH¢9.8 billion was paid as coupons to DDEP bondholders (of which GH¢3.6 billion was capitalized), while GH¢1.1 billion was paid to non-tendered bondholders representing outstanding 2024 debt service.
• For the second half of 2025, GH¢10.2 billion is due as coupons on DDEP bonds and GH¢724.1 million as debt service for non-tendered bondholders.
• Government remains committed to honouring all debt service obligations and has made adequate preparations towards full settlement of all debt service in 2025 and beyond.

 

 

PRIORITY PROJECTS UNDER RESTRUCTURED BILATERAL DEBT

• Ghana’s default on external debt service obligations on December 19, 2022, led creditors to halt disbursements for 55 bilateral projects, resulting in several uncompleted projects scattered across the country and leaving a massive US$3 billion in undisbursed loans.
• The IMF and Official Creditor Committee (OCC) annual disbursement ceiling of US$250 million for official bilateral loans means it will take a minimum of 12 years to fully draw down the undisbursed loans.
• Under the MoU with the OCC, Government submitted a priority list of 24 projects to accommodate the US$250 million annual disbursement ceiling, prioritizing projects over 70% complete.
• The 24 priority projects include:
• New Bridge Across the Volta River at Volivo
• Construction of the Tema-Aflao Road Project Phase 1
• Tema Motorway Roundabout through Ashaiman Roundabout to Atimpoku
• Construction of 14 Pedestrian Bridges
• Kumasi Roads and Drainage Extension
• Paa Grant Interchange and Sekondi/Takoradi Township Roads Phase 1
• Rehabilitation of Dome-Kitase Road
• Obetsebi Lamptey Interchange Phase 2
• Bolgatanga-Bawku-Pulimakom Road
• PTC Roundabout Interchange Project at Takoradi
• Construction of Drinking Water Facilities in Wenchi
• Sekondi-Takoradi Water Supply
• Modernization of Komfo-Anokye Teaching Hospital
• Construction of Central Medical Stores in Tema
• Effia Nkwanta Regional Hospital in Takoradi
• Bolgatanga Regional Hospital
• Establishment of the University of Environment and Sustainable Development at Bunso
• Establishment of 9 State of the Art Technical and Vocational Education Training Centres
• Integrated E-Learning Laboratories in Senior High Schools
• Expansion and Development of Existing Senior High Schools
• Renewable Energy Programme: Pilot Photovoltaic System
• Renewable Energy and Energy Efficiency Programme
• Construction of the Takoradi Market
• Kumasi Central Market Phase 2
• The resumption of disbursements and associated debt service are fully aligned with bilateral debt restructuring and IMF Programme commitments, with no room for scope increases in any priority project.
• The Ministry has commissioned a forensic audit after discovering that some contractors implementing the 55 stalled projects drew down loans without matching work done and submitted additional costs exceeding Parliamentary approvals. The House will be updated when this audit is completed.

 

UPDATE ON SINKING FUND OPERATION

• Government is operationalizing Sections 37-44 of the Public Financial Management Act, 2016 (Act 921) to build sufficient buffers in the Sinking Fund for prompt redemption of specified government loan obligations, having established both Cedi and US Dollar Sinking Fund Accounts.
• Beginning August 2025, the Ministry of Finance will commence building cash buffers to support repayment of Ghana’s domestic debt service obligations relating to DDEP bonds falling due in 2027-2028, and Eurobond redemptions from 2026.
• The Cedi Sinking Fund targets debt service peaks of GH¢20 billion (2026), GH¢50.3 billion (2027), and GH¢45.75 billion (2028), while the US Dollar Sinking Fund targets Eurobond redemptions of US$1.42 billion (2026), US$1.17 billion (2027), and US$1.14 billion (2028).
• This structured approach will provide reliable buffers ensuring timely and predictable debt redemption, enhancing investor confidence and contributing to long-term debt sustainability.

 

LIABILITY MANAGEMENT OPERATIONS

• Government has begun implementing an effective and efficient liability management programme to reduce embedded risks on the debt portfolio.
• The liability management operations will reduce debt service costs and mitigate refinancing or rollover risks, extend maturities to alleviate near-term refinancing pressures, optimize the debt portfolio by rebalancing the mix of short-term versus long-term instruments, and strengthen market confidence.
• Under these operations, Government will analyze the domestic bond market to assess suitability for bond buybacks and carefully sequence issuances of benchmark securities while prioritizing longer-dated tenors to establish a stable yield curve.

 

PRIMARY DEALERS AND BOND MARKET SPECIALIST SYSTEM

• Government’s debt management strategy is to use treasury bills for cash management purposes only and reopen the domestic bond market to finance the budget deficit.
• The reopening of the domestic bond market aims to create a more competitive primary market that can deliver the volume and pricing needed to enable government to lower its borrowing costs.
• Beginning August 2025, Government will commence the selection of new bookrunners to assist in reopening the domestic market, focusing on banks and investment dealers with the ability to achieve wider market distribution and provide advisory services on pricing and structuring.

 

REVISED MACROECONOMIC FRAMEWORK

MACROECONOMIC TARGETS

No revision required for targets for the rest of 2025.

• Real GDP, Non-Oil Real GDP of at least 4.0% and 4.8% respectively
• End-year inflation rate of 11.9%, primary surplus of 1.5% of GDP.
• Gross International reserves covering not less than 3 months of import

REVISION TO THE 2024 FISCAL FRAMEWORK

Revenue and Expenditure projections reviewed to reflect additional revenue from ESLA

• Total Revenue and Grants revised upwards from GH¢227.1 billion to GH¢229.9 billion. i.e., 16.2% to 16.4% of GDP, a nominal increase of 1.3%.

REVISIONS TO EXPENDITURES

• Primary expenditure revised upwards from GH¢209.6 billion to GH¢206.8 billion. Upward adjustment reflect allocation to support energy sector payments.
• Interest payments revised downward by GH¢2.9 billion.
• Domestic Interest payments revised downward by GH¢5.1 billion due to prudent debt management policies
• External Interest payments revised upwards by GH¢2.2 billion for debt service due to post cut-off date disbursements by bilateral creditors in 2023.
• Energy sector payments revised upwards by GH¢2.9 billion, for fuel purchases for power generation.

Overall fiscal balance on cash basis improves from 4.1% to 3.9% of GDP, on commitment basis improves from a deficit of 3.1% to 2.9% and projected annual borrowing needs reduces by GH¢2.9 billion.

UPDATE ON KEY POLICY INITIATIVES

The Ghana Gold Board (GOLDBOD)

• Gold exports from the small-scale sector stands at 51.5 tonnes, with an export value of approximately US$5 billion, far exceeding 26.4 tonnes and an export value of US$1.8 billion during the same period last year representing an increase of 180%.

 

The 24-Hour Economy and Accelerated Export Development Programme

The 24-Hour Economy and Accelerated Export Development Programme is a national initiative aimed at reducing import dependence, boosting domestic production, enhancing market access, and building a skilled, competitive workforce. At its core is the Volta Economic Corridor, a transformative project reimagining Dr. Kwame Nkrumah’s original Volta Project to serve as a hub for agro-industry, trade, and transportation. The Corridor will be delivered through four pillars: Grow24, which will irrigate over 2 million hectares for year-round farming; Make24, which will develop agro-industrial parks for textiles, pharmaceuticals, and food processing; Show24, which will build tourism and hospitality hubs along Volta Lake; and Connect24, which will establish the lake as a major inland transport route linking all regions of Ghana. To support this, the Ministry of Finance will introduce targeted incentives in the 2026 Budget to attract private investment, foster enterprise growth, and create decent, well-paying jobs.

 

ROBUST INFRASTRUCTURE DEVELOPMENT – The Big Push Programme

1. The Ministry of Finance has since issued commitment authorizations for the following road infrastructure projects under the Big Push Programme:
   1. Construction of a new bridge on the Oti River at Dambai;
   2. Rehabilitation of Wa – Han Road;

• Upgrading of Tumu – Hamile Road;

1. Upgrading of Tumu – Han – Lawra Road;
2. Reconstruction of Navrongo – Tumu Road;
3. Rehabilitation of Techiman – Nkonsia – Wenchi Road;

• Rehabilitation of Wenchi- Sawla Road;
• Construction of Sunyani Outer Ring Road;

1. Construction Of Kumasi Outer Ring Road (Eastern Quadrant);
2. Rehabilitation of Gbintri – Nakpanduri Road;
3. Rehabilitation of Dodo Pepesu – Nkwanta Road;

• Rehabilitation of Atimpoku – Asikuma Junction Road;
• Rehabilitation of Asikuma Junction – Anyirawasi Road;
• Reconstruction of Anyirawasi – Ho Tritrinu Road;

1. Upgrading of Akosombo-Gyakiti-Kudikope Road;

• Upgrading of Asikuma to Anum Boso-Kpalime Road;
• Upgrading of Adomi Bridge to Akwamufie Road;
• Rehabilitation of Ho – Kpetoe Road;
• Rehabilitation of Kpetoe-Afiadenyigba Road;

1. Rehabilitation of Afiadenyigba – Penyi Road;

• Rehabilitation of Penyi – Aflao Road;
• Dualization of Winneba – Mankessim Road;
• Dualization Of Cape Coast- Takoradi Road;
• Rehabilitation of Mankessim-Ajumako-Breman Asikuma-Agona Swedru Road;
• Rehabilitation of Tema – Aflao Road (Section 1);
• Reconstruction of Dodowa – Afienya-Dawhenya Road;
• Upgrading Of Oyibi-Appolonia-Afienya Road;
• Construction of Enchi – Elubo Road;
• Construction of Dadieso – Akontombra Road;
• Upgrading of Adwofua – Oseikojokrom Road;
• Upgrading of Enchi – Kudjouru – Pekyi Road; and
• Upgrading of Bediako Junction – Camp 15 – Sefwi Adabokrom Road.

2. As part of the Big Push Programme, we have also selected the following abandoned road projects, for which no dedicated funding was allocated by the previous administration:
   1. Rehabilitation and Upgrading of Kasoa – Winneba Road;
   2. Rehabilitation of Ofankor – Nsawam Road (Dual Carriageway);

• Dualization of Takoradi – Agona Junction Road;

1. Construction of Suame Interchange and Local Roads;
2. Construction of National Route N18: Wa – Han Road;
3. Upgrading of Tumu – Chuchuliga – Navrongo including construction of 36m span reinforced concrete bridge over Kanyibie River and 24m span reinforced concrete bridge over Bechelihu river;

• Reconstruction of Navrongo – Chuchuliga – Sandema Road;
• Rehabilitation of Tepa (Mabang) – Goaso Road;

1. Rehabilitation of Hohoe – Jasikan Road;
2. Upgrading of Nkwanta – Oti Damanko Road;
3. Reconstruction of Have – Hohoe Road;

• Dualization of Adenta – Dodowa Road; and
• Reconstruction of Jinijini – Sampa Road.

 

Feasibility studies initiated for four (4) major projects.

1. Accra – Kumasi Expressway on a completely new alignment;
2. Accra Outer Ring Road;

• Kumasi Outer Ring Road; and

1. Adawso – Ekye Amanfrom Bridge to connect the Afram Plains area.

• The Minister for Roads and Highways will be laying before this House a new Road Maintenance Trust Fund Bill to replace The Ghana Road Fund.
• Translates to about 5,000km of roads to be reconstructed in 166 identified constituencies in dire need of road infrastructure over the next 3 years.

Nursing and Teacher Trainee Allowances

All allowances due to nursing and teacher trainees from January to June 2025 fully paid.

 

KEY TAKE AWAYS

3. Economy inherited – Upon assumption of office in January this year:
   1. we were handed an economy in deep distress;
   2. a country with dispirited citizens;

• trust and faith in our leaders were at an all-time low;

1. the fundamentals were not only weak, but broken; and
2. the misery and suffering were palpable.

4. The signs of economic progress are visible and measurable:
   1. first quarter economic growth is at a 5-year high;
   2. our debt-to-GDP ratio is at a 5-year low;

• inflation has declined to a 4-year low;

1. our credit rating has improved from junk to B-, with stable outlook, a two-notch upgrade and a 4-year high;
2. we have almost reversed all the Cedi depreciation in the years 2022, 2023 and 2024.
3. This level of appreciation of the Ghana Cedi has never happened in the history of our nation;

• prices of petrol and diesel at the pump have reduced significantly to the benefit of consumers; and
• prices of sugar, rice and cooking oil at a 4-year low.

5. Expenditure and Investments
   1. an amount of US$700 million as Eurobond payment has been paid;
   2. an amount of GH¢10 billion to domestic bondholders has been paid;

• an amount of GH¢2.9 billion to the District Assemblies Common Fund (DACF) has been paid;

9. an amount of GH¢9.1 billion to the energy sector for stable power supply has been paid;
10. an amount of GH¢5 billion of arrears has been paid;
11. an amount of GH¢2.9 billion to the Ghana Education Trust Fund (GETFund) has been paid;

• an amount of GH¢1 billion to the free secondary education programme has been paid;
• an amount of GH¢2.7 billion to the National Health Insurance Scheme has been paid;

1. an amount of GH¢1.4 billion for National Health Insurance claims has been paid;
2. an amount of GH¢252 million for vaccines and essential medicines has been paid;
3. an amount of GH¢72.8 million as Capitation Grant has been paid;

• an amount of GH¢477 million to LEAP beneficiaries has been paid;
• an amount of GH¢895 million to the School Feeding Programme has been paid;
• an amount of GH¢122.8 million for BECE registration has been paid;

1. an amount of GH¢300 million to the No Fee Stress Policy has been paid;

• an amount of GH¢52 million as Teacher Training Allowance has been paid;
• an amount of GH¢369.9 million as Nursing Training Allowance has been paid;
• an amount of GH¢25 million as Assembly Members allowance has been paid;
• an amount of GH¢21 million for the National Apprenticeship Programme has been paid;

34. an amount of GH¢34.5 million to the Adwumawura Programme has been paid;

• an amount of about GH¢2 billion as Goods and Services to run an effective and efficient government machinery has been paid; and
• an amount of about GH¢2 billion to save the National Investment Bank (NIB) has been paid.

6. Others:
   1. improve the fiscal situation;
   2. restore fiscal discipline;

• implement appropriate policies to reduce interest rates significantly thereby reducing the cost of borrowing; and

1. save on domestic interest payments following the implementation of our prudent debt management policies.

7. Growth will be further boosted by our strategic initiatives including the 24-Hour Economy programme, the Big Push infrastructure programme and the revitalization of agriculture through the Agriculture for Economic Transformation Programme.
8. For 60 years, through cycles of inflation, devaluation, redenomination and recovery, the cedi has remained the symbol of our sovereignty:
   1. it has endured;
   2. it has evolved; and

• it remains the only legal tender of our Republic.

 

Major Government Spending in the first half of 2025

1. US$700m Eurobond obligations
2. GH¢10 billion to domestic bondholders
3. GH¢2.9 billion to the District Assemblies Common Fund
4. GH¢2.7 billion to Social Security and National Insurance Trust
5. GH¢9.1 billion to the energy sector for stable power supply
6. GH¢5 billion of arrears
7. GH¢4.6 billion to the Ghana Education Trust Fund
8. GH¢1 billion to the free secondary education programme
9. GH¢4.6 billion to the National Health Insurance Scheme
10. GH¢1.4 billion for National Health Insurance claims
11. GH¢252 million for vaccines and essential medicines
12. GH¢72.8 million as Capitation Grant
13. GH¢477 million to LEAP beneficiaries
14. GH¢895 million to the School Feeding Programme
15. GH¢122.8 million for BECE registration
16. GH¢300 million to the No Fee Stress Policy
17. GH¢191.7 million as Teacher Training Allowance
18. GH¢462.6 million as Nursing Training Allowance
19. GH¢25 million as Assembly Members allowance
20. GH¢21 million for the National Apprenticeship Programme
21. GH¢34.5 million to the Adwumawura Programme
22. GH¢2 billion as Goods and Services to run effective and efficient Government Ministries, Departments and Agencies
23. GH¢2 billion to save the National Investment Bank (NIB)

Total – GH¢55.50 billion