Government spending for the first seven months of 2025 was kept below target, reflecting tighter fiscal discipline and improved expenditure control.
According to the Bank of Ghana’s September 2025 Monetary Policy Report, total government expenditure stood at GH¢131.1 billion, equivalent to 9.4 percent of GDP, compared to a target of GH¢152.6 billion, or 10.9 percent of GDP.
The outturn represents a 14.1 percent shortfall relative to target but a 9.3 percent increase year-on-year.
All major spending categories came in below target, except compensation of employees. Interest payments dropped to GH¢28.9 billion, about 19.5 percent below the GH¢36 billion target, largely due to declining domestic interest rates and a stronger cedi.
Compensation of employees slightly exceeded projections at GH¢44.9 billion, while capital expenditure (CAPEX) fell sharply to GH¢10 billion, nearly 63 percent below the GH¢22.4 billion target.
The report notes that domestic CAPEX reached GH¢6.6 billion, mainly under the Big Push initiative, with foreign-financed projects contributing GH¢3.4 billion.
Meanwhile, arrears clearance amounted to GH¢4.8 billion, below the GH¢8.1 billion target, with no new arrears buildup — a sign of stronger expenditure management and government commitment to fiscal consolidation.