Gov’t plans to spend GHS 226bn, raise GHS 176bn in revenue for 2024 fiscal year
Total government expenditure projected for the 2024 fiscal year amounts to some GHS 226bn.
The projected expenditure represents approximately 21.6% of the country’s current Gross Domestic Product (GDP).
The expenditure projection according to Finance Minister Ken Ofori-Atta, reflects a reduction of 6.1% of GDP in total expenditures (commitment basis) relative to the outturn in 2022.
“This large decrease comes from the combination of fiscal consolidation efforts of 4.9% of GDP, reflecting an adjustment in revenue by 1% and primary expenditure by 4% of GDP,” noted the Finance Minister.
Total revenue and grants for 2024 are, however, projected at GH¢176.4 billion (16.8% of GDP) and are expected to be underpinned by permanent revenue measures largely tax revenue measures amounting to 0.9% of GDP.
Based on the Finance Minister’s estimates for total revenue & grants and total expenditure (including arrears clearance), the overall budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9% of GDP.
The corresponding primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6% of GDP.
