NDC’s First Mid-Year Budget Review: What You Need to Know

BY: Mensah Maxwell - mensahm1815@gmail.com 

The newly elected National Democratic Congress (NDC) administration presented its first mid-year budget review on July 24, 2025, delivered by Finance Minister Dr. Ato Forson. The review provides a rare glimpse into the government’s fiscal strategy, emerging challenges, and how it plans to reshape Ghana’s economic direction. Below are the key takeaways from the ADOA TV Research Desk.  

EXPENDITURE: Credibility vs. Reality 

While the government has signaled fiscal restraint, the numbers tell a more complex story. Primary expenditure (excluding interest payments) overshot its target by GH¢2.8 billion, largely due to GH¢9.1 billion in unplanned payments to cover energy sector shortfalls. Meanwhile, some ministries and departments received little or no funding. Notably, the Ghana Gold Board, despite facilitating over $5 billion in gold exports, received zero government support. 

There were also no disbursements for petroleum subsidies, lifeline electricity consumers, or capital investments — with over GH¢10 billion in capital expenditure delays. “Cuts like these may look good on paper but threaten long-term economic growth,” the report notes. 

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THE SPIN: Underspending vs. Discipline 

The NPP minority in Parliament has accused the NDC of “fiscal window-dressing.” According to the figures, the government spent GH¢13 billion less than planned—not through discipline, but through delays and underperformance. Still, GH¢109 billion was actually spent within six months, suggesting some balance between prudence and constraint. 

REVENUE: 

Missed Targets & Refund Controversy Customs revenue fell short by GH¢1.6 billion, due in part to a stronger cedi, which lowered local collections from dollar-based duties. Also under scrutiny is the government’s decision to suspend tax refunds, reallocating GH¢3.8 billion to close revenue gaps. This move was used to justify the removal of unpopular taxes like the e-levy, betting tax, and carbon emissions levy — an effort to ease public pressure while managing short-term cash flows.

DEBT & BONDS: Still a Heavy Load 

Though the NDC government inherited a heavily indebted economy, the mid-year review didn’t fully outline a clear debt sustainability strategy. Ghana’s reliance on domestic bonds, combined with low capital spending, suggests the country is still walking a fiscal tightrope. 

RISKS ON THE HORIZON 

The government projects an improved second-half performance, but multiple risks remain:

• Infrastructure bottlenecks 

• Delayed audits on key national projects 

• Pressure from rising inflation 

• Low investor confidence in energy-sector bonds 

LOOKING AHEAD 

With only 40% of the revised budget spent, the second half of 2025 will be pivotal. The government has promised to ramp up disbursements for infrastructure, youth employment, and local manufacturing. The Finance Ministry insists, “We are auditing before spending, not stalling progress.” But whether this approach will work — or further delay growth — remains to be seen.