The government has earmarked GHS 2.34 billion for arrears clearance in the 2025 mini-budget.

The allocation is to address outstanding financial obligations and restore confidence among contractors, suppliers, trainees and other stakeholder groups owed by the state.

In addition, GHS 20.69 billion has been budgeted as expenditure on interest payments for the first quarter of 2025.

The amount includes payments to the Energy Sector Levy Account (ESLA) and Independent Power Producers (IPPs).

The substantial interest payment highlights the current debt structure and underscores the government’s obligation to meet commitments to both domestic and external creditors during the period under review.

Ghana’s Parliament has given its approval to the 2025 Mini-Budget, amounting to GHS 68.13 billion, following extensive discussions between the Finance Committee and the Finance Minister, Dr. Mohammed Amin Adam.

The approved budget is intended to fund government activities for the first quarter of 2025, ahead of a comprehensive budget to be presented by the incoming Mahama administration.

Projected total revenue and grants for the three-month period are set 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.

In adherence to constitutional requirements, the proposal was reviewed by the Joint Committee on Budget and Finance before receiving parliamentary endorsement.

The approval process was not without controversy, as minority members accused the Finance Minister of deliberately delaying the budget presentation.

However, the majority dismissed these claims, stressing the importance of the mini-budget in ensuring uninterrupted government operations during the transition period.

With the passage of this budget, attention now shifts to its implementation as the Mahama administration prepares to take office.

Stakeholders are eager to see how the allocated funds will be managed to address national priorities and ensure a seamless transition in governance.

Expenditure Highlights

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

source: Citinewsroom