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The government’s budget plan for 2024 was revealed by Finance Minister Ken Ofori-Atta, who projects total income of GH¢176.4 billion.
During his presentation of the economic policy and the 2024 budget statement, Ofori-Atta emphasized that the government expects overall spending to amount to GH¢226.7 billion, or 21.6 percent of GDP.
6.1 percentage points less GDP than in 2022 as compared to the overall reduction in expenditures that the Finance Minister highlighted in outlining the complete fiscal policy. Ofori-Atta explained that this decrease is the result of several fiscal consolidation efforts, including adjustments to primary expenditure of 4.0 percentage points and revenue of 4.9 percentage points.
Ofori-Atta addressed the possible effects of the current external debt operation and emphasized the expected interest rate savings as well as their beneficial contribution to the sustainability of state finance.
“Total Revenue and Grants are projected at GH¢176.4 billion (16.8% of GDP), and is largely supported by tax revenue measures amounting to 0.9 percent of GDP,” Ofori-Atta said.
He went on, “The commitment for total expenditure is estimated at GH¢226.7 billion, or 21.6% of GDP. In comparison to the 2022 output, this estimate shows a 6.1 percentage point GDP decrease in total expenditures (commitment basis).
Explaining the substantial decrease, Mr Ofori-Atta said, “This large decrease comes from the combination of fiscal consolidation efforts of 4.9 percentage points of GDP, reflecting an adjustment in revenue by 1.0 percentage point and primary expenditure by 4.0 percentage points of GDP.”
“The potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability. Based on the estimates for Total Revenue & Grants and Total Expenditure (including arrears clearance), the overall Budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9 percent of GDP. The corresponding Primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6 percent of GDP” the Finance Minister added.
Source: Ghanatodayonline.com
