Ghana’s borrowing on the short-term treasury market soared to GH¢95 billion in the first quarter of 2025, sharply outpacing domestic revenue mobilization and raising concerns about fiscal sustainability and rising debt levels.
Data reviewed by The High Street Journal shows a 48 percent increase in short-term borrowing compared to the same period in 2024, when the government raised GH¢64 billion through treasury bills. This significant rise contrasts with the GH¢41 billion mobilized in domestic revenue by the Ghana Revenue Authority (GRA) during the same quarter.
While the revenue performance exceeded the GRA’s first-quarter target of GH¢36 billion by GH¢5 billion, the widening gap between income and borrowing has drawn scrutiny from analysts and fiscal observers.
The 2025 national budget outlines the government’s intention to reduce the fiscal deficit. On a commitment basis, the deficit is projected at GH¢43.8 billion, or 3.1 percent of GDP—down from 3.9 percent in 2024—with a planned primary surplus of GH¢20.3 billion, equivalent to 1.5 percent of GDP. On a cash basis, the deficit is forecast at GH¢56.9 billion, or 4.1 percent of GDP, with a primary surplus of GH¢7.3 billion.
However, the significant borrowing in the first quarter—more than double the revenue collected—raises doubts about whether these deficit targets can be sustained throughout the fiscal year. Economists warn that the current trajectory is unsustainable and could aggravate the country’s already burdened public debt profile.
The fiscal imbalance highlights an urgent need for comprehensive structural reforms. Experts point to the necessity of expanding domestic revenue sources, curbing unproductive public expenditure, and enhancing the efficiency of financial management systems.
Additionally, increasing earnings from strategic exports such as gold, cocoa, and crude oil remains critical. These sources, if properly leveraged, could complement tax revenue and provide a broader fiscal buffer.
Despite the GRA’s strong performance, analysts stress that government must take further steps to reduce reliance on expensive short-term borrowing. Strengthening the domestic revenue base and enforcing fiscal discipline are essential to sustaining long-term economic growth while avoiding a resurgence in debt vulnerabilities.
Unless addressed decisively, the persistent mismatch between revenue and borrowing will continue to weigh heavily on Ghana’s recovery prospects and the country’s broader fiscal health.