Business

Mid-year budget: Ghana exceeds revenue target in first half of 2025 – Ato Forson

Ghana has surpassed its revenue collection target for the first half of 2025, raking in a total of GH¢85.4 billion—3.2% more than the programmed estimate of GH¢82.7 billion.

The disclosure was made by the Minister for Finance, Dr. Cassiel Ato Forson, during the presentation of the 2025 Mid-Year Budget Review to Parliament on Wednesday, July 24. He attributed the positive performance to improved tax administration, increased compliance, and robust external grant inflows, all taking place within a stabilizing macroeconomic environment.

“This outturn is significant,” Dr. Forson said. “It represents 8.6 percent of GDP and underscores the effectiveness of recent policy measures to broaden the tax base and enhance domestic resource mobilization.”

The increase in revenue is primarily driven by income and property taxes, which recorded GH¢32.5 billion against a target of GH¢31.7 billion. Moreover, grants from development partners performed better than anticipated, adding a further boost to the government’s financing efforts.

The Minister also highlighted the role of technology-driven revenue reforms and digital platforms spearheaded by the Ghana Revenue Authority (GRA), which continue to close leakages and improve efficiency.

While celebrating the revenue gains, Dr. Forson stressed that prudent fiscal discipline remains essential. Expenditures for the same period were GH¢99.9 billion, leading to an overall budget deficit of 1.5% of GDP—lower than the projected 1.9%. Importantly, Ghana also recorded a *primary budget surplus of GH¢2.9 billion* (0.3% of GDP), a turnaround from the GH¢4.5 billion deficit recorded in the first half of 2024.

“This signals that our fiscal consolidation efforts are yielding results, and we are on track with the Post-COVID-19 Programme for Economic Growth (PC-PEG) agreed with the IMF,” he noted.

The stronger-than-expected fiscal performance comes as Ghana works toward restoring macroeconomic stability following years of turbulence, including high inflation, currency depreciation, and rising debt levels. The government’s ability to meet and exceed revenue targets is expected to boost investor confidence and strengthen its case in ongoing debt restructuring talks with external creditors.

Dr. Forson reaffirmed the government’s commitment to staying within its fiscal path, adding that no new taxes would be introduced for the remainder of the year.