Ghana’s public finances suffered a major blow in 2025 after the Auditor-General uncovered financial irregularities exceeding GH¢5.26 billion, with tax-related leakages alone accounting for more than 91% of the total amount, highlighting persistent weaknesses in revenue administration and financial controls across the public sector.

The findings, contained in the Auditor-General’s Report on the Public Accounts of Ghana: Ministries, Departments and Other Agencies (MDAs) for the year ended December 31, 2025, reveal the highest level of financial irregularities recorded in the past five years and underscore the growing challenge of protecting public resources at a time when the government is pursuing fiscal consolidation and economic recovery.

The report shows that total financial irregularities surged to GH¢5,266,315,079 in 2025, representing an increase of more than 155 per cent over the GH¢2.06 billion recorded in 2024.

Tax leakages dominate

The most significant source of financial losses was tax irregularities, which climbed sharply to approximately GH¢4.8 billion, accounting for more than nine out of every ten cedis lost through financial irregularities during the year.

The Auditor-General also identified an additional US$154,976 in tax-related irregularities, further increasing concerns about revenue leakages within Ghana’s tax administration system.

The scale of the tax losses comes at a time when the government continues to rely heavily on domestic revenue mobilisation to finance public expenditure, reduce borrowing and meet commitments under ongoing fiscal reform programmes.

The report suggests that weaknesses in tax administration continue to pose a major risk to government revenue generation.

Cash losses exceed GH¢410 million

Beyond tax-related issues, the audit identified significant weaknesses in cash management.

Cash irregularities amounted to GH¢410.7 million, making them the second-largest category of financial irregularities recorded during the year.

The report also identified irregularities involving debts, loans and advances amounting to GH¢29.3 million.

Payroll management also remained a source of concern, with payroll irregularities reaching nearly GH¢20 million, raising questions about unauthorised salary payments, weak personnel controls and deficiencies in payroll administration.

Additional irregularities were recorded under contracts, stores management and rent collections, indicating that financial control challenges persist across multiple areas of public administration.

Five-year trend worsens

The Auditor-General’s analysis points to a worrying upward trend in financial irregularities over the past five years.

In 2021, total financial irregularities stood at just over GH¢1.08 billion.

The figure increased to GH¢1.41 billion in 2022 before rising sharply to more than GH¢2.4 billion in 2023.

Although total irregularities declined slightly to about GH¢2.06 billion in 2024, the situation deteriorated significantly in 2025, with losses reaching a record GH¢5.26 billion.

The latest figure represents the highest amount reported since the Auditor-General began compiling the current series of public sector financial irregularities.

Tax losses accelerating

The report shows that tax irregularities have consistently driven the overall increase in financial losses.

Tax-related irregularities rose from GH¢989 million in 2021 to GH¢1.25 billion in 2022 before climbing further to GH¢2.16 billion in 2023.

Although they declined to GH¢1.58 billion in 2024, the figure nearly tripled within a year, reaching GH¢4.8 billion in 2025.

The sharp increase suggests that revenue leakages remain one of the biggest threats to Ghana’s public finances despite ongoing reforms aimed at strengthening tax compliance and improving domestic revenue mobilisation.

Financial management concerns

Cash irregularities also recorded a significant upward trajectory during the review period, rising from GH¢45.8 million in 2021 to GH¢410.7 million in 2025, reflecting growing concerns about financial controls, accountability and the management of public funds.

The Auditor-General’s findings are expected to intensify calls for stronger financial governance, tighter internal controls and enhanced accountability across Ministries, Departments and Agencies.

Financial analysts say reducing leakages in tax administration, payroll management and public expenditure will be critical if Ghana is to strengthen domestic revenue mobilisation, restore fiscal discipline and improve the efficiency of public financial management at a time of continued budgetary pressures and rising development financing needs.