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    Home » Weak revenues and high wage pressures pose key fiscal risks to Ghana’s economy
    Economy and Finance

    Weak revenues and high wage pressures pose key fiscal risks to Ghana’s economy

    Adnan AdamsBy Adnan AdamsOctober 26, 2025No Comments4 Views
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    The Bank of Ghana has identified weak revenue performance, pressures from employee compensation, and increasing energy sector payments as major fiscal risks that could impact the country’s economy for the rest of 2025.

    According to the central bank’s September 2025 Monetary Policy Report, the conclusion of external debt restructuring negotiations may also create short-term external payment challenges, potentially affecting the local currency.

    The fiscal policy implementation for January-July 2025 showed significant improvement, with a primary balance surplus of 1.0% of Gross Domestic Product, exceeding the target surplus of 0.5%. However, total revenue and grants recorded shortfalls in all broad categories, including non-oil tax revenues, oil and gas receipts, and Energy Sector Levy Account (ESLA) receipts.

    To mitigate these risks, the Ministry of Finance has reaffirmed its commitment to maintaining budget credibility through realistic revenue targets, disciplined expenditure, and transparent fiscal operations. “We are determined to ensure that every cedi allocated in the budget corresponds with actual revenue performance and that we spend within our means,” said Deputy Finance Minister Thomas Nyarko Ampem.

    “The Ministry of Finance’s commitment to budget credibility is crucial for restoring public and investor confidence in government finances. The 2026 national budget, set to be presented in November, is expected to focus on fiscal consolidation, job creation, and sustainable growth.”

    Bank of Ghana (BoG) Ministry of Finance Monetary policy
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