Government Spends GHS 95.9bn In First Half Of 2024, Below Budget Target Of GHS 104.8bn
Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has lauded government’s fiscal discipline in the first half of 2024, noting that total government expenditure amounted to GH¢95.9 billion, below the budget target of GH¢104.8 billion.
Dr. Amin Adam during the presentation of the 2024 Mid-Year Budget Review in Parliament on Tuesday, underscored the alignment of revenue mobilization and expenditure execution with the budget targets, resulting in an overall budget deficit on a commitment basis of GH¢21.3 billion.
The primary balance on a commitment basis recorded a deficit of GH¢2.3 billion, equating to 0.2% of GDP, which was close to the target deficit of GH¢2.4 billion (0.2% of GDP).
However, the overall cash budget deficit stood at GH¢36.1 billion, representing 3.4% of GDP, slightly above the deficit target of GH¢35.2 billion (3.3% of GDP).
The primary balance on a cash basis showed a deficit of GH¢17.1 billion (1.6% of GDP), compared to the period target of GH¢8.8 billion (0.8% of GDP).
Revenue Performance
Total government revenue and grants for the first half of 2024 amounted to GH¢74.7 billion, falling short by 1.9 percent against the target of GH¢76.1 billion.
Despite this shortfall, the revenue showed a nominal year-on-year growth of 24.6 percent and represented 42.3 percent of the budget’s total revenue for the year.
The Finance Minister attributed the strong revenue performance primarily to robust non-oil tax revenue which helped offset the shortfalls in oil receipts.
“We have managed to keep our expenditures below the budget target while ensuring that our revenue mobilization efforts yield significant growth. This demonstrates our commitment to maintaining fiscal discipline and achieving our economic targets,” Dr. Amin Adam stated.
The presentation by Dr. Amin Adam underscores Ghana’s efforts to navigate economic challenges through prudent fiscal management. The government’s ability to maintain expenditure below target and achieve substantial revenue growth despite shortfalls highlights its commitment to fiscal responsibility and economic stability.
The Finance Minister’s address provides a comprehensive overview of Ghana’s fiscal performance for the first half of the year, reflecting the strategic measures being taken to ensure economic resilience and sustainable growth.
With ongoing efforts to manage expenditures and enhance revenue mobilization, Ghana is poised to achieve its fiscal targets and foster long-term economic stability.
