By: Edzorna Francis Mensah
The government’s total expenditure (including payments for the clearance of arrears) has been revised downward to ¢135,742 million, representing 22.9% of GDP, from the original budget projection of GH¢137,529 million, representing 27.4% of GDP.
Total revenue and grants have also been revised to GH¢96,842 million (16.4% of GDP) in 2022, down from the 2022 Budget target of GH¢100,517 million (20.0% of GDP) representing 3.7 percent reduction.
The Finance Minister, Ken Ofori Atta, in a statement to review the 2022 budget statement on the floor of Parliament on Monday, July 25, 2022, again disclosed, “Interest payments have been revised upwards from GH¢37,447 million (7.5% of GDP) to GH¢41,362 million (7.0% of revised GDP), mainly on account of inflationary pressures and exchange rate depreciation resulting in higher cost of financing.”
The Minister also reiterated the 50% cut in fuel coupon allocations for all political appointees and heads of government institutions, including SOEs, effective April 1, 2022; the moratorium on foreign travel except per-approved critical and/or statutory travel; and the 50% cut in fuel coupon allocations for all political appointees and heads of government institutions, including SOEs, effective April 1, 2022.
He also announced Government support for 15% Cost of Living Allowance (COLA) to the public in, upward revision to the average weighted domestic interest rates; upward revision in the exchange rate on account of higher depreciation; and revision of the Benchmark Crude oil price from US$61.2/bbl to US$94.8 and the Benchmark Crude oil volume from 59.5mn barrels to 58.0mn.
According to him, the revisions in the government’s fiscal operations result in a fiscal deficit (on cash basis) of GH¢38,900 million (6.6% of revised GDP) up from the 2022 Budget deficit target of GH¢37,012 million (7.4% of GDP).
He said, “corresponding primary balance is a surplus of GH¢2,461 million (0.4% of revised GDP), up from the 2022 budget estimate of a surplus of GH¢435 million (0.1% of GDP).
