Presenting the 2025 mid-year budget review on July 24, Finance Minister Dr Cassiel Ato Forson noted that the government’s commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile.

He revealed that the public debt reduced from GH¢726.7 billion as of the end of December 2024 to GH¢613 billion as of the end of June 2025. Ghana’s public debt reduced by GH¢113.7 billion in six months.

The sector minister noted that “for the first time in Ghana’s history, there is a negative 15.6% rate of debt accumulation.”

Ghana’s public debt-to-GDP ratio as of the end of June 2025 was 43.8%, down from 61.8% at the end of 2024. Ghana’s public debt as a percent of GDP reduced by 18% in six months. The country’s foreign debt, as a percentage of total public debt, declined from 57.4% as of the end of December 2024 to 49% by the end of June 2025.

“This has significantly improved Ghana’s debt sustainability,” the Finance Minister said while speaking on the floor of the House.

Touching on Ghana’s programme with the International Monetary Fund (IMF), the Finance Minister noted that Ghana remains on track with the implementation of the Programme. He revealed that the government’s commitment to fiscal discipline, prudent debt management and exchange rates has paved the way for a 5th review scheduled for September.

“The 5th Review, which is scheduled for September 2025, will be based on end-June 2025 data. Preliminary data shows that Ghana is on course to achieving most of the targets for the 5th Review. Mr. Speaker, our commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile,” he added.

On commercial debt restructuring, the Finance Minister stated that the Ministry has made two debt service payments of about US$700 million to Euro bondholders. Dr Forson disclosed that beginning in August, the Ministry of Finance will commence the building of cash buffers to support the repayment of Ghana’s domestic debt service obligations relating to the Domestic Debt Exchange Programme bonds, which will fall due in 2027 and 2028.

Six months of the year, the government’s expenditure stood at GH¢109.7 billion, equivalent to 7.8% of the Gross Domestic Product (GDP).

The Finance Minister noted that the current expenditure was 14.3% below the programmed amount of GH¢128.0 billion, equivalent to 9.1% of GDP. According to the sector minister, this reflects the government’s strong expenditure control.

The minister noted that total expenditures (commitment) for 2025 have been programmed at GH¢270.9 billion, down from GH¢279.2 billion in 2024. Primary expenditure on a commitment basis (expenditures net of interest payments)—is projected at GH¢206.8 billion in 2025 (14.8% of GDP), presenting a significant decline from 19.8% of GDP in 2024 and lower than the 2023 level of 15.6% of GDP.

Providing a breakdown of the total expenditure in six months in Parliament on Thursday, the minister said that primary expenditure, or non-interest expenditures on a commitment basis, amounted to GH¢84.3 billion, or 6.0% of GDP. This is an improvement of about GH¢13.3 billion over the target of GH¢97.5 billion, which is 7.0% of GDP.

Interest payments, on the other hand, amounted to GH¢25.4 billion, which is 1.8% of GDP. This is below the target of GH¢30.5 billion, which is 2.2% of GDP. Dr Cassiel Ato Forson explained that this was mainly due to lower domestic interest payments.

Domestic interest payments amounted to GH¢21.6 billion, against a target of GH¢26.5 billion, representing a reduction of GH¢4.9 billion, and this was mainly on account of lower than planned domestic borrowings and the decline in T-bill rates. External interest payments amounted to GH¢3.8 billion, against a target of GH¢4.0 billion. This stemmed from the appreciation of the Ghana cedi.

The cedi has recorded a remarkable turnaround in the first six months of 2025, appreciating by 42.6% against the US dollar. The cedi also gained 30.3% against the British pound and 25.6% against the euro during the same period.

Other expenditure, mainly comprising Energy Sector Levies (ESL), transfers, and Energy Sector Payment Shortfalls, amounted to GH¢11.4 billion, or 0.8% of GDP. This was 12.7% below the target of GH¢13.1 billion, or 0.9% of GDP for the period. Arrears clearance amounted to GH¢4.8 billion.

On a cash basis, the overall balance recorded a deficit of 1.1% of GDP. The deficit, according to Dr Cassiel Ato Forson, was largely financed from domestic sources with Net Domestic Financing (NDF) of GH¢13.1 billion, well below the GH¢18.7 billion target.

Net Foreign Financing was GH¢2.8 billion, mostly from the utilization of a GH¢4.5 billion International Monetary Fund (IMF) loan disbursement from the 1st to the 6th of January 2025, before the Mahama administration took office. Project loan disbursement was GH¢2.4 billion.

The Finance Minister noted that although Ghana is relying on the domestic market for financing, “We have borrowed less than we planned, signifying strong expenditure control and fiscal discipline.”

Presently, the government is revising both revenue and expenditure projections to reflect the impact of the additional revenue from the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).

Total expenditure on a commitment basis has been revised downward to GH¢269.5 billion from the original budget projection of GH¢270.9 billion. However, primary expenditure has been revised upwards to GH¢209.6 billion from the original budget projection of GH¢206.8 billion.

Total revenue and grants have been revised upwards from the 2025 budget target of GH¢227.1 billion to GH¢229.9 billion, or from 16.2% of GDP to 16.4% of GDP, representing a nominal increase of 1.3%.

“The additional revenue of GH¢2.9 billion will come from the increase in revenues from the amendment to the Energy Sector Levies Act,” the minister added.

Interest payments have been revised downwards by GH¢4.3 billion, from the original budget projection of GH¢64.1 billion to GH¢59.9 billion. Domestic interest, on the other hand, has been revised downward by GH¢5.1 billion, mainly on account of gains from the reduction in the treasury bill rates, as a result of the implementation of our prudent debt management policies.

However, external interest payments have been revised upward by GH¢795 million to make additional provision for debt service due on post cut-off date disbursements made by our bilateral creditors since 2023. Energy sector payments have also been revised upwards by GH¢2.9 billion to provision for fuel purchases for power generation.