Gov’t Misses 2025 Revenue Target Despite Expenditure Restraint
Ghana’s total Revenue and Grants for 2025 fell short of target, despite what authorities describe as improved revenue mobilisation efforts, according to the March 2026 Monetary Policy Report by the Bank of Ghana.
The report showed that total revenue and grants amounted to GH¢224.883 billion, representing 16.1% of Gross Domestic Product (GDP), below the programmed target of GH¢229.95 billion (16.4% of GDP).
Domestic revenue similarly underperformed, coming in at GH¢223.059 billion (15.9% of GDP), compared to a target of GH¢227.275 billion (16.2% of GDP). The outturn was largely driven by weaker-than-expected performance in tax revenue, oil and gas receipts, and grants.
Tax revenue—comprising income and property taxes, domestic goods and services taxes, international trade taxes, and oil-related taxes—stood at GH¢183.987 billion (13.1% of GDP), missing its target of GH¢189.964 billion (13.6% of GDP). The 3.1% negative deviation from target points to persistent structural inefficiencies in revenue mobilisation.
Oil and gas receipts recorded the most significant shortfall, coming in at GH¢8.711 billion against a target of GH¢16.514 billion, representing a 47.3% underperformance and a 56.1% year-on-year decline.
Non-tax revenue, however, provided some support to overall revenues, exceeding its target. Collections amounted to GH¢27.870 billion, 5.0% above the programmed GH¢26.548 billion, though this represented a marginal year-on-year growth of 0.5%.
The performance was weighed down by lower-than-expected dividend and profit transfers, including receipts from the Collection Account for Petroleum (CAPI), as well as yields from the capping policy.
Other revenues also outperformed expectations, reaching GH¢10.335 billion—8.0% above the target of GH¢9.568 billion and more than double the GH¢4.928 billion recorded in 2024.
Grants received over the period totalled GH¢1.824 billion, falling 31.8% short of the GH¢2.674 billion target. Nonetheless, this represented a 6.3% increase over the GH¢1.715 billion recorded in the same period in 2024.
On the expenditure side, total spending and net lending amounted to GH¢233.778 billion, significantly below the target of GH¢269.496 billion, reflecting what government describes as deliberate fiscal restraint.
Compensation of employees exceeded expectations, rising to GH¢78.970 billion—3.6% above target—and accounting for 35.4% of total domestic revenue. The wage bill also recorded a 17.5% year-on-year increase, highlighting continued rigidities in recurrent expenditure.
Spending on goods and services declined to GH¢6.089 billion, 8.7% below target and 47.1% lower than the GH¢11.509 billion recorded in 2024, suggesting tighter control over discretionary expenditures. Interest payments amounted to GH¢49.891 billion, exceeding the target of GH¢46.792 billion.
The increase was attributed to debt service obligations, although some relief was observed from lower domestic interest costs and gains from local currency appreciation on external debt.
Despite the revenue shortfalls, the government indicated that expenditure cuts helped offset the gap, resulting in a better-than-programmed fiscal outturn.
The fiscal deficit for 2025 was recorded at 1.0% of GDP, significantly lower than the target of 2.8% of GDP. The primary balance posted a surplus of 2.6% of GDP, outperforming the target surplus of 1.5% of GDP.
Overall, the fiscal performance for 2025 reflects a consolidation effort anchored on expenditure restraint, even as revenue mobilisation challenges persist.
