Finance Minister: 5.3% GDP fiscal deficit met; 2022 current expenditure contained
Finance Minister, Ken Ofori-Atta, says the government has met its fiscal deficit target of 5.3% of GDP in the first seven months of 2022.
Speaking at a press briefing on Wednesday, September 28, the Minister for Finance noted overall fiscal deficit for the first seven months amounted to GHS 31.1 billion (5.3% of GDP), against a target of GHS 31.2 billion (5.3% of GDP).
Again, the corresponding primary balance for the period was a deficit of GHS 7.6 billion (1.3% of GDP), against a deficit target of GHS 7.8 billion (1.3% of GDP).
According to him, this year’s expenditure has also largely been contained owing to the operationalisation of expenditure cuts announced since March 2022.
“We are on course with expenditure rationalisation efforts, and will continue to enforce strict adherence to these measures across all MDAs, while ensuring efficient delivery of public services,” he stated.
Touching on revenue mobilization efforts of the Ghana Revenue Authority, the Minister averred the GRA has intensified its efforts to shore up domestic revenue mobilisation, particularly in relation to the enforcement of compliance measures.
“The increased visibility of GRA officials at shopping malls and various commercial establishments and at our borders across the country is in pursuit of meeting our revenue objectives”.
“Such exercises form part of an ongoing drive to ensure we take significant steps forward in remedying long-standing challenges with domestic revenue mobilization, indiscipline, corruption and leakages. Of course, heightened tax compliance and increased tax-audit exercises will continue to be complemented by policy initiatives that allow us to tap into a wider pool of taxpayers in the years ahead”, he remarked.
The government, since the first quarter of 2022, has cut discretionary expenditures in the budget by 30%.
In addition, it announced a number of expenditure measures to keep public spending in line with its tightening economic conditions including restraints on purchase of new vehicles and a moratorium on non-statutory travel.
Meanwhile, the Finance Minister has also pointed out that the Ghanaian economy is gradually on the upswing despite the numerous shocks it faced over the past two years.
Responding to the 3.4% and 4.8% outturn in growth in Q1 and Q2 of 2022, Mr. Ofori-Atta said the figures demonstrate that in spite of recent challenges, there has been economic growth.
“This progress gives us a solid foundation to confront the challenges ahead. Undoubtedly, global risks remain on the horizon, including a strengthening US dollar and higher interest rates which negatively affect external borrowing.”
“This development is exerting enormous pressure on our Balance of Payment position, and thus the need for us to expedite our engagement with the International Monetary Fund”, he remarked.
