2022 Budget: Government projects Ghs 128 billion in expenditure
Government for the 2022 fiscal year is projecting to spend some GHs 128.3 billion in total expenditure, approximately 25.8 percent of Gross Domestic Product (GDP).
This is per the 2022-2025 Budget Preparation Guidelines published on the website of the Finance Ministry.
The Budget Preparation Guidelines provides instructions on the processes and procedures for the preparation of the 2022-2025 Budget Estimates and indicative medium-term budget ceilings for Ministries, Departments and Agencies (MDAs) as well as Metropolitan and District Assemblies (MMDAs).
Per the 2022-2025 Budget Preparation Guidelines, government’s total expenditure is projected to further expand to Ghs 135.6 billion (24.1% of GDP) in 2023, and Ghs 157.1 billion (22.1% of GDP) in 2025.
Combined resources available for Goods and Services, COVID-19-related expenditures and domestically financed Capital expenditure will however amount to ¢12.5 billion in 2022.
Also, payments to Independent Power Producers (IPPs) is projected at $1 billion per year.
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Additionally, compensation of employees is projected to increase from Ghs 31.5 billion (7.2% of GDP) in 2021 to Ghs 34.6 billion (7.0% of GDP) in 2022 and further to Ghs 38.5 billion (6.8% of GDP), Ghs 42.3 billion (6.7% of GDP), and Ghs 46.9 million (6.6% of GDP) in 2023, 2024, and 2025, respectively.
Goods and Services is projected to hit Ghs 5.2 billion (1.1% of GDP) in 2022, and then increase to Ghs 4.9 billion (0.9% of GDP), Ghs 5.4 million (0.9% of GDP) and Ghs 6.7 million (0.9% of GDP) in 2023, 2024 and 2025, respectively.
Interest payments by government, is projected to reach Ghs 37.2 billion (7.5% of GDP) in 2022, Ghs 38.0 million (6.8% of GDP) in 2023, ¢38.7 billion (6.1% of GDP) in 2024, and Ghs 41.3 billion (5.8% of GDP) in 2025.
Capital expenditure is also projected to hit Ghs 11.8 billion (2.4% of GDP) in 2022, increasing to Ghs 12.2 billion (2.2% of GDP) in 2023, Ghs 11.4 billion (1.8% of GDP) in 2024, and further to Ghs 12.1 billion (1.7% of GDP) in 2025.
revenueMeanwhile, the projected total revenue and grants for government for the 2022 fiscal year is Ghs 89.1 billion.
The projected total revenue for 2022 represents a nominal growth of 23 percent over the projected outturn for 2021 and is expected to increase to Ghs 100.6 billion (17.9% of GDP) in 2023, Ghs 112.5 billion (17.7% of GDP) in 2024 reaching Ghs 126.3 billion (17.7% of GDP) by 2025.
Of the 2022 projected Revenue, gross non-oil Tax Revenue is estimated at Ghs 70.5 billion (14.2% of GDP) and represents a per annum growth of 23.5 percent. On net basis (i.e. excluding tax refunds), non-oil Tax Revenue is estimated at Ghs 66.96 billion (13.5% of GDP).
Non-oil Non-Tax revenues from MDAs that generate Internally Generate Funds (IGFs) will amount to GH¢8.41 billion in 2022 and increase by about 14.8 percent thereafter.
Grants disbursements will be project-related grants and it is expected to dwindle from Ghs 599.89 million in 2022 to Ghs 157.71 million in 2025.
