Government is projected to achieve GHc 67.1 billion in total revenue, representing 16.9 percent of GDP, in the 2020 fiscal year.
This was made known by the Finance Minister, Ken Ofori-Atta, during the presentation of 2020 Budget Statement and Economic Policy, presented to Parliament in Accra.
Of the total expected revenue for the period, GHc 65.8 billion is projected to be from domestic revenue, representing an annual growth of 22.5 percent over the projected outturn for 2019.
The government is anticipating an increase in grants disbursement from development partners to the tune of GHc 1.2 billion, translating into 0.3 percent of GDP. This represents a nominal growth of 48.8 percent over the projected funds of GHc 833.2 million in 2019.
Nevertheless, the projected revenue falls short of government’s projected total expenditure, including clearance of arrears, by over GHc 18.9 billion, equivalent to 4.7 percent of GDP, for the 2020 fiscal year.
According to the Minister, the government expects to spend a total of GHc 85.9 billion – 21.6 percent of GDP in 2020. This represents a growth of 21.2 percent above the projected outturn for 2019.
Out of the projected expenditure for 2020, wages and salaries are projected at GHc 22.9 billion, translating into 26.7 percent of the total expenditure, including arrears clearance.
Use of Goods and Services is also projected at GHc 8.3 billion, 2.1 percent of GDP and 9.7 percent of the total expenditure, while interest payments on public debt is projected at GHc 21.7 billion, 5.4 percent of GDP.
The Finance Minister noted that in order to reduce the budget rigidities and create fiscal space to fund growth-enhancing expenditures, government will continue with the implementation of the Earmarked Funds Capping and Realignment Act.
“Consequently, transfers to Statutory Funds as well as all other earmarked funds are estimated at GHc 15.6 billion (3.9 percent of GDP) in 2020, representing 19.6 percent growth over the projected outturn for 2019,” Ofori-Atta added.
Capital expenditure for the period is projected at GHc 9.3 billion, representing a 53.5 percent increase over the 2019 projected outturn.
Of this amount, domestic financed capital expenditure is estimated at GHc 3.8 billion, while foreign financed capital expenditure is estimated at GHc 5.5 billion, to be funded by a combination of project grants and loans.
- Cedi depreciation declines following strong macro-economic fundamentals – Ofori-Atta
- PDS deal cancellation was to protect $3 billion ECG assets — Ofori-Atta
- We’ll reduce losses, improve service quality in energy sector – Ofori-Atta
- Understanding the 9% Communications Service Tax
- Finance Minister declares ‘state of emergency’ in energy sector
- 2019 Mid-year Review: ‘Petrol, mobile tax to go up
- Don’t introduce new taxes – AGI warns ahead of midyear budget review
- Mid-year budget review postponed to July 29
- Ghana is now rising star – IMF
- World Bank projects 7.5% growth of Ghana’s economy
- Interest on loans for 2018 stood at GHC21.1bn – Finance Minister
- Debt crisis looms if Eurobond not invested wisely – IMF report
- Government to reduce import duties soon – President Akuffo Addo
- Bank of Ghana introduces GH¢100, GH¢200 notes and GH¢2 coin
- We’re planning to ban rice importation by 2022 – MoFA
- Government announces strategic investor for Komenda Sugar Factory
- Government, Wienco rescue rice farmers
- BoG directs banks to publish salaries of top personnel
- Ghana Buffer Stock Company to sustain drive for consumption of local rice
- GSE signs agreement with Singapore Cooperation to transform its operations
- ‘Year of Return’ stimulates Ghana’s economic growth
- German investor to build cocoa processing plant in Suhum Ghana
- Dr Bawumia cuts sod for 30km Sinohydro Cape Coast inner city roads
- Rice importers withdraw ads from media house over local rice campaign
- Ghana to end rice importation in next five years – AGRA
- Govt agrees to increase ports tariffs
- Three auto firms to unveil locally assembled cars in 2020
- Ghana Gas’ demand of gas from Jubilee, TEN fields low – Tullow
- Mahama lacks ‘competent’ cousins like Ken Ofori-Atta – Chairman Wontumi alleges
- 2020 Budget: What finance minister said about sports