Total Gov’t revenue, expenditure hit GHS 44.9bn and GHS 59.5bn in first five months of 2023
The Bank of Ghana’s Monetary Policy Committee, in its July 2023 press release, unveiled provisional data on Ghana’s budget execution for the period spanning January to May 2023. The data revealed promising disparities from the initially programmed budget targets, indicating positive developments in the country’s fiscal performance.
Notably, the overall broad cash deficit for the mentioned period was reported at 1.8 percent of GDP, a noteworthy decrease compared to the initially projected budget target of 4.0 percent of GDP. This positive deviation in the fiscal deficit highlights the government’s prudent fiscal management and potential improvement in fiscal consolidation efforts.
Furthermore, the primary balance, on a cash basis, exhibited a deficit of GH¢1.2 billion, accounting for a mere 0.1 percent of GDP. This figure contrasts significantly with the anticipated deficit target of GH¢6.7 billion, representing 0.8 percent of GDP. Such a favorable outcome in the primary balance underscores the country’s commitment to effective fiscal policy implementation and disciplined financial management.
On the revenue front, total revenue and grants amounted to GH¢44.9 billion, equivalent to 5.6 percent of GDP. While this figure fell short of the targeted GH¢54.6 billion, constituting 6.3 percent of GDP, it demonstrates progress in revenue generation despite the ongoing economic challenges.
In parallel, total expenditure for the period amounted to GH¢59.5 billion, accounting for 7.4 percent of GDP, below the projected target of GH¢82.8 billion, representing 9.5 percent of GDP. This indicates prudent fiscal spending and potential efforts to curb expenditure amidst the evolving economic landscape.
The overall cash deficit of GH¢14.6 billion, with GH¢11.7 billion financed from domestic sources, exemplifies the government’s commitment to responsible fiscal management and its ability to access resources from domestic markets to finance budgetary requirements.
As Ghana continues to navigate economic uncertainties, the reported encouraging fiscal performance, with deviations from budget targets, provides an optimistic outlook for the nation’s financial stability and economic resilience. As fiscal policymakers analyze these developments, they will undoubtedly strive to sustain the positive trajectory and achieve long-term fiscal sustainability.
