Government Spending Below Target in First 7 Months of 2025 – Bank of Ghana Report

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The Bank of Ghana’s September 2025 Monetary Policy Report has revealed that government spending for the first seven months of the year was kept below target, reflecting improved fiscal discipline and stronger expenditure controls.

According to the report, total government expenditure stood at GH¢131.1 billion, equivalent to 9.4% of GDP, compared to the programmed GH¢152.6 billion (10.9% of GDP).

This represents:

• A 14.1% shortfall in spending relative to the target.
• A 9.3% increase compared to the same period in 2024.

Key Highlights of the Report:

• Interest Payments: Declined to GH¢28.9 billion, about 19.5% below the GH¢36 billion target. This was attributed to falling domestic interest rates and a strengthened cedi.
• Compensation of Employees: Slightly exceeded projections, reaching GH¢44.9 billion.
• Capital Expenditure (CAPEX): Plunged to GH¢10 billion, almost 63% below the target of GH¢22.4 billion. Of this, GH¢6.6 billion came from domestic sources (mainly under the Big Push initiative), and GH¢3.4 billion was foreign-financed.
• Arrears Clearance: Totalled GH¢4.8 billion, well below the GH¢8.1 billion target, with no new arrears accumulation — an indicator of improved budget execution and commitment to fiscal consolidation.

The Bank of Ghana noted that the outturn reflects stronger fiscal controls and growing credibility in the government’s effort to stabilize the economy.