Government has said it will be using 52.63 per cent of its total projected revenue – including grants – to pay interests accrued on its debts.
Total projected revenue for the first quarter of 2021 is Ghs 13.3 billion.
While Government’s total expenditure for the period is Ghs 27.4 billion, resulting in a fiscal deficit of Ghs 10.7 billion for Q1 2021.
Out of the projected total revenue, Government in its Expenditure in Advance of Appropriation Budget said it will be using a little over Ghs 7 billion to make interest payments for just the first 3 months of 2021.
Government amortisation for Q1 2021 is also projected to be Ghs 3.42 billion.
Interest payments on Government debts have been rising steadily over the years, it is estimated that interest payments in the third quarter of 2019 reached 40.71 per cent of total revenue (Ghs 52.9 billion) from a previous 31.73 per cent in 2018.