Mid-Year Budget Review: Gov’t revises downwards expenditure appropriation from GHS 227bn to GHS 206bn
Finance Minister, Ken Ofori-Atta, in the presentation of the 2023 Mid-Year Budget Review, has made a noteworthy revision in the country’s expenditure appropriation. The initial GHS 227.7 billion budget allocation has been prudently downsized to GHS 206.0 billion.
According to Mr. Ofori-Atta, the revised figure eliminates the need for a Supplementary Budget for the remaining six months of 2023. This favorable outcome has been attributed to Ghana’s commendable progress in surpassing non-oil revenue targets during the first half of the year. Notably, non-oil tax revenue collection demonstrated resilience, despite facing modest shortfalls in Value Added Tax (VAT) collections.
The Finance Minister further highlighted key contributing factors to this improved fiscal outlook being a reduction in domestic interest payments and amortization, following the completion of the first phase of the Domestic Debt Restructuring Programme (DDEP), coupled with a decline in foreign-financed capital expenditure (CAPEX).
Nevertheless, Mr. Ofori-Atta acknowledged that oil revenues did not meet expectations, a consequence of volatile global oil prices. Consequently, the Finance Minister informed the Parliament of an impending downward review of oil-related revenue and associated expenditures to align with the observed underperformance in certain revenue streams. This review, he noted, will directly impact the Annual Budget Funding Amount (ABFA).
Despite the challenges posed by oil revenue shortfalls, the Finance Minister reiterated the Government’s unwavering commitment to its robust growth strategy within the confines of the fiscal space and the ongoing fiscal consolidation programme.
He emphasized that Ghana would continue to foster an environment conducive to domestic and foreign private sector investments while promoting production expansion. Government policies and agencies will play a crucial role in encouraging and stimulating economic growth.
The 2023 Mid-Year Budget Review represents a proactive approach by the Government to address evolving economic conditions. It underscores the Government’s dedication to achieving sustainable economic growth and maintaining fiscal stability amidst an ever-changing global economic landscape.
