Gov’t appropriates GHS 205bn as total expenditure for 2023 fiscal year
Government, in its 2023 budget statement, has allocated as total expenditure for the 2023 fiscal year some GHS 205bn.
The projected GHS 205bn total expenditure including clearance of arrears, represents 25.6% of Gross Domestic Product (GDP).
According to the Minister for Finance, employees compensation, interest payments, capital expenditure, use of goods and services among others underpin the projected GHS 205bn total expenditure.
“Mr Speaker, the following projections underpin the resource allocation for 2023:
- Compensation of Employees is projected at GH¢44,990 million (5.6% of GDP).
- Use of Goods and Services is also projected at GH¢8,048 million (1.0% of GDP).
- Interest Payment is projected at GH¢52,550 million (6.6% of GDP).
- Grants to Other Government Units is estimated at GH¢30,079 million (3.8% of GDP).
- Capital Expenditure (CAPEX) is projected at GH¢27,694 million (3.5% of GDP).
- Other Expenditure, mainly comprising Energy Sector Levies (ESL) transfers and Energy Sector Payment Shortfalls is estimated at GH¢26,739 million.
Regarding grants and total revenue to be mobilised for the 2023 fiscal year, the Minister noted some GHS 143bn (18% of GDP) is projected to be mobilised for 2023.
The projected GHS 143bn total revenue and grants, the Minister furthered, is underpinned by permanent revenue measures – largely tax revenue measures – amounting to 1.35% of GDP.
Based on the estimates for total revenue and grants and total expenditure, the overall budget balance to be financed
is a fiscal deficit of GH¢61,475 million, equivalent to 7.7% of GDP.
The corresponding primary balance is a deficit of GH¢8,925 million, equivalent to 1.1% of GDP.
