<\/p>\n
The Government of Ghana intends to spend a total amount of GH\u00a2205.4 billion in 2023, including the clearance of its arrears.<\/p>\n
This was disclosed by the Minister of Finance, Ken Ofori-Atta, on Thursday, when he presented the 2023 budget statement and policy comment to Parliament.<\/p>\n
This is despite government\u2019s own revenue target of GH\u00a2143. 9 billion \u2013\u00a0 a situation which means government will have to borrow GH\u00a2 61.9 billion from external sources to make up the difference.<\/p>\n
\u201cTotal Revenue and Grants is projected at GH\u00a2143,956 million (18.0% of GDP) and is underpinned by permanent revenue measures \u2013 largely Tax revenue measures \u2013 amounting to 1.35 percent of GDP as outlined in the revenue measures. Mr. Speaker, Total Expenditure (including clearance of Arrears) is projected at GH\u00a2205,431 million (25.6% of GDP). This estimate shows a contraction of 0.3 percentage points of GDP in primary expenditures (commitment basis) compared to the projected outturn in 2022 and a demonstration of Government\u2019s resolve to consolidate its public finances\u201d, the Minister said.<\/p>\n
While presenting the budget statement and economic policy, Mr. Ofori-Atta explained that out of the amount, GH\u00a245 billion will be spent as compensation for employees which represents 5.6% of Gross Domestic Product (GDP).<\/p>\n
He noted that, GH\u00a28.048 million will be expended on goods and services which will cover 1.0% of GDP adding \u201cInterest Payment is projected at GH\u00a253 billion representing 6.6%\u201d.<\/p>\n
Mr. Ofori-Atta added again that \u201cMr. Speaker, grants to other government units are estimated at GH\u00a230,079 million, representing 3.8% of GDP. Mr. Speaker, Capital Expenditure (CAPEX) is projected at GH\u00a227.694 million representing 3.5% of GDP\u201d.<\/p>\n
\u201cMr. Speaker, Other Expenditure, mainly comprising Energy Sector Levies (ESL) transfers and Energy Sector Payment Shortfalls is estimated at GH\u00a226,739 million\u201d, the Minister of Finance mentioned.<\/p>\n
During the 2022 budget review, total revenue and grants were revised to GH\u00a297 billion (16.4% of GDP) down from the 2022 Budget target of GH\u00a2101 billion (20.0% of GDP) representing 3.7 percent reduction.<\/p>\n
In the same presentation, total expenditure (including payments for the clearance of arrears) has been revised downward to GH\u00a2136 billion (22.9% of GDP) from the original budget projection of GH\u00a2138 billion (27.4% of GDP).<\/p>\n
Meanwhile, the current GDP of the country is expected to reach US$72 billion dollars by the end of 2022.<\/p>\n