Ghana’s Government Spending Falls 14% Below Target in 2025, Signaling Stronger Fiscal Discipline — BoG Report

Government spending in Ghana for the first seven months of 2025 fell 14 percent below target, reflecting tighter fiscal discipline and improved expenditure control, according to the Bank of Ghana’s latest September 2025 Monetary Policy Report. The central bank’s data highlights efforts by the government to rein in expenditure amid ongoing fiscal consolidation measures.

The report revealed that total government expenditure reached GH¢131.1 billion, equivalent to 9.4% of GDP, compared to a projected GH¢152.6 billion, or 10.9% of GDP. This represents a 14.1% shortfall from the target but still marks a 9.3% increase year-on-year, indicating cautious spending growth alongside fiscal restraint.

A breakdown of the data shows that nearly all major spending categories came in below target — except for compensation of employees, which slightly exceeded projections at GH¢44.9 billion. Interest payments dropped sharply to GH¢28.9 billion, about 19.5% below the GH¢36 billion target, largely due to easing domestic interest rates and a stronger cedi, which helped reduce the government’s debt servicing costs.

Capital expenditure (CAPEX), however, recorded a significant shortfall, totaling only GH¢10 billion, nearly 63% below the GH¢22.4 billion target. The report attributed GH¢6.6 billion of this spending to domestically financed projects under the government’s Big Push initiative, while foreign-financed projects accounted for GH¢3.4 billion.

In addition, the government spent GH¢4.8 billion on arrears clearance, well below the GH¢8.1 billion target. Importantly, the report noted no new arrears buildup, a sign of improved expenditure management and sustained commitment to fiscal prudence. Analysts say the report reinforces the government’s renewed focus on stabilizing public finances and strengthening investor confidence ahead of 2026.

source: citi newsroom