2025 Mini-Budget: GHS 2.3 Billion Allocated for Arrears Clearance
Government Allocates GHS 2.3 Billion for Arrears Clearance in 2025 Mini-Budget, Secures Parliamentary Approval
- Ghana's Parliament has approved the 2025 Mini-Budget, totaling GHS 68.13 billion
- In addition to arrears clearance, GHS 20.69 billion has been earmarked for interest payments
- This allocation underscores the government's commitment to meeting both domestic and external debt obligations.
The government has allocated GHS 2.34 billion in the 2025 Mini-Budget to address outstanding arrears, aiming to settle financial obligations and restore confidence among contractors, suppliers, trainees, and other stakeholders owed by the state.
In addition to arrears clearance, GHS 20.69 billion has been earmarked for interest payments in the first quarter of 2025, covering obligations to the Energy Sector Levy Account (ESLA) and Independent Power Producers (IPPs).
This allocation underscores the government’s commitment to meeting both domestic and external debt obligations.
Ghana’s Parliament has approved the 2025 Mini-Budget, totaling GHS 68.13 billion, following extensive discussions between the Finance Committee and the Finance Minister, Dr. Mohammed Amin Adams.
This budget is intended to fund government operations for the first quarter of 2025, ahead of the full budget to be presented by the incoming Mahama administration.
Total projected revenue and grants for the three-month period are estimated at GHS 42.54 billion, representing 3.5% of GDP.
The expenditure plan was presented by the Finance Minister on January 2, 2025, as part of the Expenditure in Advance of Appropriation measure. The proposal was reviewed by the Joint Committee on Budget and Finance before securing parliamentary approval.
While the approval process was not without controversy, with minority members accusing the Finance Minister of delaying the budget presentation, the majority defended the mini-budget as essential to ensuring uninterrupted government operations during the transition period.
With the passage of this budget, attention now turns to its implementation, particularly how the allocated funds will be managed to address national priorities and ensure a smooth transition for the incoming administration.
Expenditure Breakdown:
- Compensation of Employees: GHS 16,462,828,490
- Use of Goods and Services: GHS 3,123,221,785
- Interest Payment: GHS 20,691,523,500
- Subsidies: GHS 45,507,080
- Grants to Other Government Units: GHS 9,193,773,211
- Social Benefits: GHS 234,703,983
- Other Expenditure: GHS 9,463,817,451
- Capital Expenditure: GHS 5,293,248,499
- Total Expenditure: GHS 64,508,623,999
- Arrears Clearance: GHS 2,345,505,925
- Amortisation: GHS 1,280,544,603
- Expenditure in Advance of Appropriation: GHS 68,134,674,527
