The Government of Ghana has announced a significant allocation of GHS 2.34 billion in its 2025 Mini-Budget for the purpose of clearing outstanding arrears. This allocation aims to settle financial obligations owed to contractors, suppliers, trainees, and other stakeholders, with the intention of restoring confidence in the state’s fiscal management.
The Mini-Budget reflects the government’s commitment to addressing its debt responsibilities and enhancing economic stability.
In addition to the arrears clearance, the government has earmarked GHS 20.69 billion for interest payments during the first quarter of 2025. This allocation is designed to cover obligations related to the Energy Sector Levy Account (ESLA) and payments to Independent Power Producers (IPPs). Such financial commitments underscore the current debt structure of the nation and highlight the government’s dedication to meeting obligations to both domestic and external creditors.
Ghana’s Parliament has given its approval to the 2025 Mini-Budget, which amounts to GHS 68.13 billion, following extensive discussions between the Finance Committee and Finance Minister Dr. Mohammed Amin Adam. The approved budget is intended to finance government operations during the first quarter of 2025, in anticipation of a comprehensive budget that will be presented by the incoming administration led by former President John Dramani Mahama.
The projected total revenue and grants for the three-month period have been set at GHS 42.54 billion, representing approximately 3.5% of the nation’s Gross Domestic Product (GDP). The expenditure plan was unveiled by the Finance Minister on January 2, 2025, as part of the Expenditure in Advance of Appropriation measure, which allows for the government to continue operations while awaiting the formal approval of the budget.
In accordance with constitutional requirements, the Mini-Budget proposal underwent review by the Joint Committee on Budget and Finance before receiving the endorsement of Parliament. This procedural review is critical to ensuring that the budget aligns with national priorities and adheres to fiscal regulations.
The approval process was not without its controversies. Minority members of Parliament accused the Finance Minister of intentionally delaying the budget presentation, arguing that this could jeopardize the government’s ability to operate effectively during the transition period. However, the majority dismissed these allegations, emphasizing the importance of the Mini-Budget in ensuring that government operations remain uninterrupted during this critical time.
With the passage of the Mini-Budget, attention now shifts toward its implementation as the Mahama administration prepares to take office. Stakeholders, including civil society organizations, business leaders, and the general public, are eager to see how the allocated funds will be managed. There is a collective hope that these resources will be directed toward addressing pressing national priorities and ensuring a seamless transition in governance.
The expenditure highlights of the Mini-Budget reveal key allocations aimed at various sectors of the economy. The total expenditure is broken down as follows: GHS 16,462,828,490 is allocated for the compensation of employees, reflecting the government’s commitment to supporting its workforce. The provision for the use of goods and services stands at GHS 3,123,221,785, which is essential for maintaining government operations and services.
Interest payments are a significant portion of the budget, amounting to GHS 20,691,523,500, demonstrating the government’s obligation to service its debt. Furthermore, subsidies have been allocated GHS 45,507,080, while grants to other government units total GHS 9,193,773,211. Social benefits are set at GHS 234,703,983, reflecting the government’s commitment to supporting vulnerable populations.
Other expenditure amounts to GHS 9,463,817,451, while capital expenditure has been earmarked at GHS 5,293,248,499, underscoring the government’s focus on infrastructure development. The total expenditure is set at GHS 64,508,623,999, with additional allocations for arrears clearance at GHS 2,345,505,925 and amortization totaling GHS 1,280,544,603. The overall expenditure in advance of appropriation amounts to GHS 68,134,674,527.
As the government moves forward with the implementation of the 2025 Mini-Budget, it is essential for stakeholders to remain vigilant and engaged in the process. The effective management of these funds will be crucial for restoring confidence in the government’s ability to fulfill its financial obligations and promote economic stability.
The Mini-Budget represents a critical step toward addressing the financial challenges facing the country. By prioritizing arrears clearance and ensuring timely interest payments, the government is taking necessary measures to build trust with contractors, suppliers, and other stakeholders who have been affected by delayed payments.
Looking ahead, the incoming Mahama administration will have the responsibility of continuing the momentum established by this Mini-Budget. Effective oversight and transparent management of public funds will be essential in navigating the complexities of Ghana’s economic landscape. As the nation prepares for a new chapter in governance, the successful implementation of the 2025 Mini-Budget will play a vital role in shaping the future of Ghana’s economy and the well-being of its citizens.
In conclusion, the allocation of GHS 2.34 billion for arrears clearance in the 2025 Mini-Budget is a significant commitment by the government to address outstanding financial obligations and restore confidence among stakeholders. As the budget receives parliamentary approval and moves into the implementation phase, all eyes will be on the government to ensure that the funds are effectively managed to meet national priorities and facilitate a smooth transition in governance. The path ahead will require collaboration, transparency, and accountability to secure a prosperous future for Ghana.
