The Government of Ghana made a significant profit in September 2025 as the government’s revenue exceeded expenditure, revealing the need to increase non-tax revenue to ensure more growth.
Ghana’s total revenue for September 2025 was 11.1 percent of GDP, a 0.4 percent growth from the 10.7 percent obtained in 2024. The total expenditure, on the other hand, declined by 2 percent from 14.6 percent in 2024 to 12.6 percent of GDP recorded in September 2025.
Interestingly, total revenue grew by 1.4 percent month-on-month from August to September, while total expenditure also expanded by 1.4 percent of GDP. The government, as of September, multiplied its revenue and reduced its expenditure.
The total revenue and grants increased, between of 1.1 percent and 1.4 percent, from January to September 2025, after the financial year began with a sharp dip from December 2024. The sharp decline may be caused by the post-holiday seasonal slowdowns, broader economic factors like high inflation or policy uncertainty, and industry-specific challenges.
Ghana’s tax revenue also increased by 0.4 percent year-on-year between September 2024 and September 2025, and 1.1 percent month-on-month between August and September.
According to the Bank of Ghana data, Ghana’s tax revenue over the period contributed approximately 80.91 percent to the domestic revenue. The non-tax revenue derived from gold and cocoa exports, as well as oil revenue, contributed approximately 19.09 percent.
Economic experts have therefore called for the government to focus more on boosting the non-tax revenues to increase total revenue. This call comes at a time when a number of taxes have been repealed, and the shortfalls in revenue need to be filled. The government has communicated to boost revenue through two main means, tax complains through widening the tax net and increasing non-tax earnings. Economists have noted that tax compliance is a medium to long-term strategy, but the government should focus more on the non-tax earnings.
The government’s total year-on-year revenue increased by 0.4 percent, while the amount the government spent on capital expenditure, in the same period, dropped by 1.2 percent. This shows that the government’s investment spending in 2025 was very low. To ensure development, job creation, and increased economic growth, the government must increase allocation for capital expenditure.
The government in the 2026 Budget increased allocation for capital expenditure, intending to spend mostly on capital expenditure, like infrastructure and human development.
Economic Benefit of a Surplus Budget
In the third quarter of 2025, Ghana had a surplus budget as the government embarked on fiscal discipline and prudence to achieve the IMF target. This surplus was confirmed in the 2026 Budget, where it is reported that Ghana had a 1.6 percent primary surplus of GDP. This exceeded the government’s target of 0.6 percent surplus.
Under this condition, experts describe Ghana’s economy as having improved fiscal health, reduced debt percentage to GDP, and enhanced macroeconomic stability, leading to increased consumer spending and investor confidence.
With the improved fiscal health and economic stability derived from the surplus budget, interest rates lowered, and there was crowding-in. After the Monetary Policy Committee (MPC) met, the policy rate (the rate at which the Central Bank lend to the commercial Banks) reduced from 21.5 percent to 18 percent.
This decision was made on the back of a surplus budget and other macroeconomic indicators. The lending rate (the rate at which the commercial banks lend to the public) will also trickle down, interest rate falls, and increased investment by the private sector due to cheaper borrowing (crowding-in).
A surplus budget also frees the fiscal space for future investment. The continuous budget surplus builds the fiscal buffer or savings. Consistency is key in achieving this target. This buffer allows the government to increase capital expenditure to support long-term growth.
A surplus budget further strengthens the macroeconomic indicators, including the Ghana cedi, inflation rate, investor confidence, and public debt levels. It also helps the government to meet its fiscal consolidation objectives.
In spite of these benefits, the success story can easily turn sour as consistent surplus targeting risks under spending in the right areas, especially if it is artificially created.
In the 2025Q3, Ghana’s revenue exceeded its expenditure and brought many significant impacts on the Ghanaian economy. Raising the percentage point of non-tax revenue will boost total revenue on the back of fiscal discipline, reduced public debt, and sustained economic stability.
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