By
Patience Gbeze, GNA
Accra, July 19, GNA – The January to May 2018
fiscal performance shows that the Total Revenue and Grants fell short of target
by GH¢1,428.7 million, representing 0.6 per cent of GDP, while total
expenditures were below target by GH¢796.5 million (0.3 per cent of GDP).
That resulted in a cash fiscal deficit of
GH¢6,371.8 million, representing 2.6 per cent of GDP, against a target of
GH¢5,739.5 million (2.4% of GDP).
Mr Ken Ofori-Atta, Minister of Finance, presenting
the 2018 Mid-Year Fiscal Policy review to Parliament, said “We anticipate that
at this rate, if remedial actions are not taken, the end-year fiscal deficit
target could widen mainly on the back of lower revenues”.
“Our analysis indicates that, without
additional efforts, Total Revenue and Grants would amount to an estimated
GH¢49,610.4 million (20.5% of GDP) or 2.8 percent lower than the original
Budget target of GH¢51,039.1 million (21.1% of GDP).
“Of the Total Revenue and Grants amount of
GH¢49,610.4 million, non- oil Tax Revenue is estimated at GH¢37,500.5 million
(15.5% of GDP) compared to our original budget estimate of GH¢39,001.8 million
(16.1% of GDP),” he added.
Mr Ofori-Atta said, on the other hand, Total
Expenditure (including the net change in arrears clearance), would amount to an
estimated GH¢61,451.6 million (25.4% of GDP), GH¢558.7 million lower than the
programmed target of GH¢62,010.3 million.
He said the resulting fiscal deficit would
amount to GH¢11,841.2 million (4.9% of GDP), against a programmed target of
GH¢10,971.1 million (4.5% of GDP).
“This will derail our fiscal consolidation
efforts and put our objective of reducing the public debt profile at risk. A
net fiscal adjustment of GH¢870 million (0.4% of GDP) would be required to
ensure that we achieve our fiscal deficit target of 4.5 percent of GDP,” he
said.
The Minister said to ensure that the
achievement of the 2018 fiscal objectives and target are not derailed, this
mid-year review affords them the opportunity to propose sustainable revenue and
expenditure measures for the consideration and approval from Parliament.
These measures, he said, include new tax
measures, strengthening of tax compliance and expenditure adjustments.
GNA