IC Research estimates that the nation’s overall revenue in 2025 will be GH¢209.3 billion, or roughly 17.2% of GDP.
This will indicate a reduced growth of 16.1% compared to the projected 33.8% year-over-year growth for 2024.
Regarding spending, it emphasized that the estimated total expenditure (based on a commitment basis) in 2025 is GH¢240.9 billion, or around 19.8% of GDP.
This will indicate a more significant reduction in spending growth to 10.4% annually as opposed to the projected +32.2% annual growth for 2024.
The International Monetary Fund clarified that the spending projection is predicated on complete debt restructuring, but it also emphasized the necessity of tightening spending restrictions and putting in place a framework for greater fiscal responsibility. In light of this, we believe that the anticipated decline in the expenditure-to-GDP ratio to 19.8% (from 20.7% in 2024) amid a mostly flat projected revenue-to-GDP ratio of 17.2% signifies a consolidation based on post-election year expenditure limitations,” the statement stated.
There will be no restructuring of T-bills.
According to IC Securities, treasury bills will not be restructured because they are still safe for short-term investments and liquidity management.
This is in line with the government’s stance that it has no plans to restructure T-bills because they are not included in the Debt Sustainability Analyses carried out for the concluding comprehensive debt restructuring program.
We reaffirm that Ghanaian T-bills are still secure for short-term investment and liquidity management, given these guarantees and our conviction that they are essential to financial stability.
Since the country’s loan default in 2022, the government has been heavily borrowing from the local treasury market, fueling speculation that a future restructuring of the short-term instruments was imminent.
Since the country’s loan default in 2022, the government has been heavily borrowing from the local treasury market, fueling speculation that a future restructuring of the short-term instruments was imminent.
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