Review of the National Budget for the Second Half of the Year

Ghana’s 2025 Mid-Year Budget Review provides more than just an update on economic indicators and spending projections—it offers a glimpse into the government’s priorities and its approach to fiscal governance in a challenging environment. While financial experts are better positioned to unpack the technicalities, it’s important to recognize that a national budget also reflects values, intent, and the direction of policy.

After reviewing the document, six areas stood out that merit broader public attention and discussion.

1. Cleaning Up the Government Payroll

A critical highlight is the ongoing payroll audit, which aims to address the long-standing issue of “ghost names” on the government’s salary register. The Ghana Audit Service has reportedly completed 91% of the audit across all 16 regions—a commendable feat.

One early revelation is striking: the government lost GH¢150.4 million over just two fiscal years by continuing to pay salaries to staff who had exited the system. And that figure accounts for just one category of ghost workers.

Attempts to resolve this issue have been made under successive administrations, yet it continues to drain public resources. The recent scandal involving the National Service Secretariat only underscores the urgency. With wages and salaries accounting for roughly 25% of total expenditure in 2025, sanitizing the payroll could yield significant fiscal benefits—if the findings are enforced and reforms implemented effectively.

2. Domestic Bond Market Re-entry and Bookrunner Changes

The budget also announced the reopening of the domestic bond market to help finance the deficit. This move was accompanied by the selection of new bookrunners to assist with the process—raising questions about the reasons behind the change.

While the government’s decision is within its purview, transparency around such shifts would be useful, especially considering the crucial role these institutions play in market confidence and debt management. The ultimate concern should remain: how well-positioned are these new partners to manage the nation’s financing needs?

3. Macroeconomic Stability Targets: Holding the Line

Despite some positive macroeconomic trends—including easing inflation and currency stabilization—the government has opted to maintain its existing targets rather than revise them. This cautious approach signals realism and discipline. Recovery from economic disruption is rarely smooth, and consistency in policy execution is key to moving from stabilization to sustainable growth.

4. Energy Sector Levies: Revenue with Purpose?

In Point 422 of the budget review, the government states that an additional GH¢2.9 billion in revenue is expected from amendments to the Energy Sector Levies Act. Initially introduced to tackle the energy sector’s mounting debt, the levy increase has a clear purpose.

Still, it’s important that this added revenue is ring-fenced and used transparently. As previously discussed, citizens have made repeated financial sacrifices to support the energy sector. The hope is that future administrations won’t revisit the issue by asking for more, but instead implement durable, structural reforms.

5. Free SHS and Political Consistency

The budget reaffirms the government’s commitment to the Free Senior High School policy. Amid political season narratives, this sends a strong signal. Unfortunately, election periods often bring misinformation and policy distortion. It is up to voters to assess claims critically and determine whether policy continuity aligns with their interests.

6. The Cocoa Sector: A Lingering Risk

Finally, the cocoa sector remains flagged as a fiscal risk, with current debt standing at GH¢32 billion. While policy steps have been taken to stabilize the energy sector, similar urgency is needed here.

The COCOBOD Turnaround Strategy—part of the broader IMF-supported economic program—was supposed to chart a new course. The current administration would do well to assess what groundwork was laid and act swiftly to bring the cocoa industry back to health.