In a striking mid-year revelation, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced that the country has recorded a primary surplus of 11.1% of GDP, far exceeding the government’s own conservative target of just 0.4%.
The disclosure, made during the presentation of the 2025 Mid-Year Budget Review in Parliament, was met with stunned silence — quickly followed by jubilant applause from the majority side. “This is not just a number; it is a signal — a signal that fiscal sanity is back,” Dr. Forson proclaimed.
Just a year ago, Ghana’s public finances were under immense strain. Mounting debt, ballooning interest payments, and weak revenue mobilisation had created a toxic cocktail of economic uncertainty. However, in just under 200 days into the new administration, the narrative appears to have changed dramatically.
According to the Finance Minister, the surplus was achieved through a mix of aggressive expenditure control, elimination of waste, and increased domestic revenue mobilisation efforts. The introduction of an enhanced e-tax system, improved compliance from large taxpayers, and cuts in non-essential government spending played crucial roles.
Why the Primary Surplus Matters
A primary surplus means the government’s revenues exceeded its non-interest expenditures. It signals that the state is living within its means, and is now better positioned to begin reducing the overall public debt stock. For investors and lenders, this is a powerful indicator of credibility.
“This 11.1% primary surplus is not just record-breaking; it is economically transformative,” Dr. Forson stated. “It means we are no longer borrowing to pay salaries or for recurrent expenditures.”
The surplus signals a reassertion of fiscal control. It reassures both the international community and the Ghanaian public that the country’s finances are finally on a sustainable path. Development partners and credit rating agencies — who had previously raised red flags — are expected to respond positively.
Already, Ghana’s risk premium has declined in global markets, and discussions are underway for a potential return to the Eurobond market in 2026, under improved borrowing terms.
The Mahama Administration’s Hand
Dr. Forson did not hesitate to credit the success to President John Mahama’s leadership. “This is what responsible governance looks like,” he said. “We are restoring Ghana’s economic dignity.”
He added that fiscal transparency and regular publication of budget performance updates will remain central to the administration’s fiscal strategy.
While most government officials and pro-government analysts hailed the milestone, others sounded a note of caution.
Civil society organisations have also urged the government to use the fiscal space to prioritise social spending, especially in health, education, and job creation.
If sustained, this fiscal performance could mark the beginning of a new economic era for Ghana — one in which budget credibility, prudent public finance management, and investor trust define the national economic discourse.
The numbers don’t lie. For the first time in years, Ghana isn’t running to catch up. It’s setting the pace.
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