The government has budgeted GHS 20.69 billion as expenditure on interest payments for the first quarter of 2025.
The amount includes payments to the Energy Sector Levy Account (ESLA) and Independent Power Producers (IPPs).
This allocation as captured in the 2025 mini-budget for the first quarter of the year signals the growing burden of debt servicing on the national budget amidst ongoing fiscal challenges.
The substantial interest payment highlights the current debt structure and underscores the government’s obligation to meet commitments to both domestic and external creditors during the period under review.
Ghana’s Parliament has approved the 2025 Mini-Budget, totalling GHC68.13 billion, after thorough deliberation at the Finance Committee level with the Finance Minister, Dr. Mohammed Amin Adam.
Total revenue and grants for the period is however projected to be GHS 42.54 billion [3.5% of GDP].
The budget will fund government operations for the first quarter of the year, pending the substantive budget presentation by the incoming Mahama administration.
The approval follows the Finance Minister’s presentation of the Expenditure in Advance of Appropriation for January to March 2025 on January 2, 2025.
The proposal was subsequently referred to the Joint Committee on Budget and Finance for review and recommendation, in line with Article 180 of the 1992 Constitution and the Standing Orders of Parliament.
Despite earlier accusations by the minority that the Finance Minister deliberately postponed the presentation, the majority dismissed these claims, emphasizing the budget’s critical role in maintaining government operations.
The passage of this budget signals a critical transition as the Mahama administration prepares to take office.
All eyes will now be on the government to ensure the effective implementation of the budget and the fulfilment of its policy objectives for the nation.
Expenditure Highlights
Compensation of Employees – GHS 16,462,828,490
Use of Goods and Services – GHS 3,123,221,785
Interest Payment – GHS, 20,691,523,500
Subsidies – GHS 45,507,080
Grants to Other Government Units – GHS 9,193,773,211
Social Benefits – GHS 234,703,983
Other Expenditure GHS 9,463,817,451
Capital Expenditure – GHS 5,293,248,499
TOTAL EXPENDITURE – GHS 64,508,623,999
Arrears Clearance – GHS 2,345,505,925
Amortisation – GHS 1,280,544,603
EXPENDITURE IN ADVANCE OF APPROPRIATION – GHS 68,134,674,527
