Ghana’s Revenue Falls Short in 2025 as Spending Drops 13% – BoG Report

Revenue Misses Target Despite Modest Growth

Ghana’s total revenue and grants for 2025 stood at GH¢224.883 billion, representing 16.1% of GDP, according to the March 2026 Monetary Policy Report by the Bank of Ghana.

This fell short of the government’s target of GH¢229.950 billion (16.4% of GDP).

Domestic revenue accounted for GH¢223.059 billion (15.9% of GDP), also below the projected GH¢227.275 billion (16.2% of GDP).

The shortfall was largely driven by weaker performance in tax revenue, oil and gas receipts, and grants.

Tax Revenue Declines, Leakages Persist

Tax revenue totalled GH¢183.987 billion (13.1% of GDP), missing its target of GH¢189.964 billion (13.6% of GDP).

This represents a 3.1% negative deviation, pointing to continued systemic leakages.

Oil and gas receipts were among the weakest areas, coming in at GH¢8.711 billion, far below the target of GH¢16.514 billion, a sharp 47.3% shortfall.

Year-on-year, this category declined by 56.1%.

Non-Tax Revenue and Other Sources Show Strength

Non-tax revenue performed better, reaching GH¢27.870 billion, exceeding its target by 5.0%.

This reflects a modest 0.5% year-on-year increase.

“Other revenue” also exceeded expectations, recording GH¢10.335 billion, 8.0% above target and more than double the GH¢4.928 billion recorded in 2024.

However, grants underperformed, totalling GH¢1.824 billion, a 31.8% shortfall from the programmed target, despite a 6.3% year-on-year increase.

Government Cuts Spending by 13%

Total government expenditure and net lending for 2025 stood at GH¢233.778 billion, significantly below the target of GH¢269.496 billion.

This reflects a 13% decline in spending, signalling tighter fiscal control.

Key Spending Areas:

Compensation of Employees:

GH¢78.970 billion — above target and up 17.5% year-on-year

(accounts for 35.4% of domestic revenue)

Goods and Services:

GH¢6.089 billion — 8.7% below target

(down 47.1% compared to 2024)

Interest Payments Rise Above Target

Interest payments reached GH¢49.891 billion, exceeding the target of GH¢46.792 billion.

Despite this, lower domestic interest payments and a stronger local currency helped ease overall pressure.

Fiscal Deficit Improves Beyond Target

Ghana recorded a fiscal deficit of 1.0% of GDP, outperforming the target of 2.8%.

The primary balance posted a surplus of 2.6% of GDP, exceeding the target of 1.5%.

Government: Spending Cuts Offset Revenue Shortfalls

The government described the 2025 fiscal performance as a mix of improved revenue mobilisation efforts and strict expenditure control.

While revenue targets were missed, the impact was offset by reduced spending, helping stabilise the overall fiscal position.