The Government of Ghana spent GH¢194.36 billion in 2025, 24% below the planned budget of GH¢250.31 billion, the Bank of Ghana’s January 2026 Monetary Policy Report has revealed.
Compensation of Employees
Expenditure on wages, salaries, pensions, gratuities, and related costs totaled GH¢71.27 billion, slightly above the target of GH¢70.04 billion by 1.8%, marking a 16% year-on-year increase. Compensation accounted for 38.2% of domestic revenue mobilized during the period.
Goods and Services
Spending on goods and services amounted to GH¢5.27 billion, 16.8% below the target of GH¢6.34 billion, and down 86.3% compared to the same period in 2024, reflecting government restraint in discretionary spending.
Interest Payments
Total interest payments were GH¢46.21 billion, below the target of GH¢57.87 billion but slightly higher than the GH¢43.68 billion recorded in 2024. The reduction relative to the target was driven by lower domestic interest rates and cedi appreciation.
Grants
Transfers to other government units, including the National Health Fund, GET Fund, Road Fund, Energy Fund, District Assemblies Common Fund, and the Ghana Infrastructure Fund, totaled GH¢50.81 billion, exceeding the target of GH¢48.98 billion by 3.7% and growing 24.2% year-on-year.
Capital Expenditure
Capital spending reached GH¢12.98 billion, only 0.9% of GDP, well below the programmed GH¢31.40 billion (2.2% of GDP), a shortfall of 58.7% and a 50.6% decline compared to 2024.
Other Expenditure
Other spending totaled GH¢14.50 billion, 59.4% below the GH¢35.69 billion target, and lower than the GH¢24.77 billion recorded in the previous year.
The report indicates that while the government exercised fiscal restraint in discretionary and capital spending, pressures on compensation and grants contributed to deviations from the budget, highlighting the balance between fiscal discipline and essential outlays.
