Mid-Year Budget Review: 10 key take outs from Finance Minister’s 2025 update to Parliament

Finance Minister Dr Cassiel Ato Forson on Thursday, July 24, 2025, presented the Mid-Year Fiscal Policy Review to Parliament, reaffirming that the government will not seek additional funds beyond what was already approved for the year.

He said the government remains within the limits set out in the 2025 budget and is focusing on managing expenditure, improving revenue collection, and completing critical infrastructure projects while maintaining macroeconomic stability under the ongoing programme with the International Monetary Fund.

Below are 10 key points from Dr Forson’s presentation to the House:

1. No request for extra funds

Dr Forson told Parliament that the government is not seeking a supplementary budget. Projections for GDP growth (4 per cent), non-oil GDP growth (4.8 per cent), and end-year inflation (11.9 per cent) remain unchanged.

“Mr Speaker, I am not asking for additional money,” he said.

2. Public debt drops by GH¢113.7 billion

Ghana’s total public debt declined from GH¢726.7 billion in December 2024 to GH¢613 billion by June 2025, representing a reduction of GH¢113.7 billion. The debt-to-GDP ratio also fell from 61.8 per cent to 43.8 per cent.

“This is the first time in our history that we are recording a negative debt accumulation rate of 15.6 per cent,” Dr Ato Forson said.

3. GH¢1.6 billion revenue loss at ports

The Minister reported that customs revenue fell short by GH¢1.6 billion due to smuggling and fraudulent practices at the ports, particularly in Tema. He announced the deployment of artificial intelligence and enhanced cargo tracking systems to curb leakages.

4. Audit into 55 stalled infrastructure projects

A forensic audit is underway to investigate 55 stalled projects where contractors accessed loan funds without corresponding work. Some are also reported to have submitted inflated variation claims.

5. GH¢150 million in unearned salaries identified

Payroll audits across all 16 regions revealed over 14,000 unverifiable workers and 53,311 separated staff still drawing salaries. The Ghana Audit Service estimates that at least GH¢150 million in unearned salaries will be recovered.

“Persons who validate ghost names will be held personally liable,” Dr Ato Forson warned.

6. 24 projects to be completed by 2028

The government has identified 24 infrastructure projects, including hospitals, schools, roads, and markets, that are over 70 per cent complete. These will be prioritised for completion by 2028. Dr Ato Forson said no changes will be made to the scope or cost of these projects.

7. Sinking funds set up for debt servicing

Two dedicated sinking fund accounts, one in cedis and one in US dollars, have been established to meet debt obligations due between 2026 and 2028. The move is aimed at reducing pressure on future budgets.

8. Domestic borrowing requirement reduced

The government’s domestic borrowing needs have been revised downwards from GH¢64.1 billion to GH¢59.8 billion. Dr Forson attributed this to improved market conditions and falling treasury bill rates.

9. Energy sector levies to generate GH¢2.9 billion more

Amendments to the Energy Sector Levies Act are expected to yield an additional GH¢2.9 billion, which will go toward clearing arrears and supporting power supply.

10. Ghana’s credit rating improves

Fitch Ratings has upgraded Ghana’s long-term foreign currency issuer rating from ‘Restricted Default’ to ‘B- with a stable outlook’. This marks the first credit rating improvement since 2021.

“This reflects renewed investor confidence in Ghana’s reforms,” Dr Ato Forson stated.