The government’s 2025 Mid-Year Budget Review, delivered to Parliament last week, offers more than a numbers dump, it’s a reality check on how much money came in, what it was spent on, and why some hard (and occasionally unpopular) decisions are being made.
Yes, we know, budgets aren’t exactly popcorn reading. But if you’ve ever wondered why your road still has potholes the size of soup bowls or why government projects seem allergic to completion, here’s your cheat sheet. This is what the numbers mean, and why they matter, even if you’re not an economist, just someone trying to stretch a salary.
1. How much money came in?
By mid‑year, the government had collected GH¢99.34 billion in total revenue and grants, 3% less than the GH¢102.58 billion it had hoped for. Not terrible, but let’s just say it didn’t exactly meet its New Year’s resolution.
Here’s where the money came from:
- Taxes: About GH¢84.35 billion, just shy of the GH¢85.30 billion target. Company profits and wage taxes showed up on time like responsible tenants. But oil-related taxes and fuel levies were like that cousin who promises to send momo and then ghosts, thanks to weak oil prices and lower consumption.
- Non-tax revenue: Fees, dividends from state-owned companies and other charges brought in GH¢10.18 billion, about 19% below target. Turns out, some state enterprises missed their dividend payment deadlines, possibly due to forgetting their PINs or just… vibes.
- Energy levies (ESLA): Brought in GH¢3.29 billion, slightly above target. So yes, those annoying levies on your fuel receipts are doing something after all.
- Grants: Our foreign donor friends coughed up GH¢0.73 billion, far less than the GH¢1.07 billion expected. Maybe they’re waiting to see if we clean our fiscal room first.
Bottom line? The government has collected about 44% of its full-year revenue budget by June. Not bad, but not enough for champagne. Or even malt.
2. How much money went out?
We spent GH¢109.59 billion in the first half, 14% less than the GH¢128.04 billion planned. So yes, Ghana is technically underspending. But don’t get too excited, it’s mostly because we’re postponing projects, not because we suddenly discovered frugality.
Here’s where the money actually went:
- Public sector pay: Salaries and pensions took a whopping GH¢38.84 billion. That’s more than half of the annual wage budget, and still climbing. If the budget were a pizza, this slice would leave you with crusts.
- Interest on the debt: GH¢25.42 billion was spent servicing loans. Imagine paying your ex for a vacation you never even enjoyed. That’s kind of what interest payments feel like.
- Goods and services: Ministries bought fuel, paper, and other essentials worth GH¢1.94 billion, far below the GH¢3.16 billion target. Some are finally resisting the temptation to print 500-page memos for 5-minute meetings.
- Grants to statutory funds: NHIS, GETFund and the Road Fund got GH¢24.87 billion, roughly as planned. Yes, your health insurance deductions and school levies are still being collected like clockwork.
- Capital projects: Only GH¢7.11 billion was spent building roads, schools and hospitals, 61% shortfall. So if your community project is still in the “cutting sod” phase, now you know why.
- Other costs: Power sector payments and bailouts cost us GH¢9.95 billion, a bit below target. Electricity may not always flow, but the bills certainly do.
In total, the government used about 40% of its annual spending budget. So technically, Ghana’s budgeting approach is like your fridge: the essentials get restocked, but the luxury chocolate remains on the shelf.
3. What does this mean for the budget balance?
Even though revenue was GH¢3.2 billion short, the government also spent GH¢18.5 billion less than planned. In budgeting terms, this is called “silver lining, duct-taped to a cloud.”
Highlights:
- Some taxes outperformed, like VAT, which keeps bouncing back like a resilient side hustle.
- Oil-related taxes and state dividends, however, dragged their feet.
- Spending on wages and statutory funds stayed on target, but capital investment basically hit the pause button.
- Interest payments and energy debts are still eating a chunk of the pie. And not the small slice either.
4. Why should an ordinary Ghanaian care?
Aside from the fact that your taxes funded all of this? Here’s why:
- Services you care about: When oil taxes and dividends fall, so does funding for roads, classrooms, and hospitals. And no, the potholes won’t fix themselves.
- Jobs and growth: Capital spending delays hurt job creation and infrastructure development. Meanwhile, keeping salaries flowing means teachers and nurses can keep showing up, and maybe even smile.
- Debt and taxes: More borrowing = more interest = fewer funds for development. Think of it like a reverse susu: you keep paying, but someone else takes the pot.
- Future taxes: If revenue gaps persist, expect creative new taxes or levies with names like “Special Civic Resilience Fee” or “Modified Living Adjustment Surcharge.”
Key Takeaways :
- Revenue collection is improving in some areas like VAT, e‑levy and the health levy. But oil taxes, import duties, and state dividends are lagging like an outdated phone.
- Spending discipline came mostly from cutting non-essentials and delaying projects. Salaries and interest still eat the lion’s share.
- The deficit looks manageable, for now, because spending cuts outweighed the revenue shortfall. But long-term growth could suffer if capital projects remain on snooze.
- Going forward, Ghana must boost non-oil revenue and collect dividends on time, while still finding ways to build roads and pay down debts, without turning the budget into a magic show.
The budget may not have fireworks, but it tells an honest story: Ghana is trying to walk a fiscal tightrope, eyes on recovery, feet wobbling over spending cuts and revenue gaps. It’s a balancing act with real-life consequences.
So yes, maybe next time you’re stuck in traffic beside a half-finished flyover, you’ll know it’s not just poor planning, it’s also about taxes not arriving, oil prices misbehaving, and ministries pinching cedis like their lives depend on it.
