The revenue outturn for the seven months of 2025 was 5.0% below target, the September 2025 Monetary Policy Report has revealed.
This is notwithstanding a strong growth in revenue and grants by 22.9% in year-on-year terms.
However, the expenditures were broadly contained, 14.1% below the programmed target. This reflected strong control of spending.
According to the report total revenue and grants as of July 2025 was GH¢116.2 billion (8.3% of GDP), less than the target of GH¢122.9 billion (8.8% of GDP).
This represented a shortfall of 5.5% from the target, but registering a year-on-year growth of 22.9%.
Revenue Shortfall Largely Broad Based
The revenue shortfalls were largely broad based, reflecting in all the key tax lines.
Total revenue and grants for the period ending July 2025 witnessed improved buoyancy in performance amid missed targets.
Non-oil tax revenue was below target by 0.2%. PAYE was below target by 3.5% due to reduced mining sector payments stemming from the cedi’s appreciation. Corporate tax was above target by 2.8% mainly from the mining and financial sectors.
The domestic components of VAT, GETFund levy, and NHIL exceeded their targets by 2.2%, 14.0%, and 14.8%, respectively. This was driven by higher consumption following a decline in prices.
On the other hand, the import component fell short of target by 3.8%, 4.6%, and 5.2%, respectively, due to the cedi’s appreciation.
As a result, import duties fell short of target by GH¢1.9 billion (13.0%), driven by lower-than expected CIF value of imports for the period.
Primary Balance Records Surplus
Meanwhile, the primary balance on commitment basis (the fiscal anchor) as at end-July 2025 recorded a surplus of 1.0% of Gross Domestic Product.
This surpassed the targeted surplus of 0.5% of GDP.
According to the report, the significant appreciation of the cedi has reduced the debt burden and improved debt sustainability.
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