Gov’t sets target of GH¢143. 9 billion, to spend GH¢205.4 billion and borrow GH¢ 61.9 billion

Finance Minister Ken Ofori-Atta has asked parliament to approve a total amount of GH¢205.4 billion, including the clearance of its arrears.

The Minister who presented the 2023 budget today, Thursday, November 24, 2022, said the revenue target for 2023 is GH¢143. 9 billion.

It also seeks to borrow GH¢ 61.9 billion from external sources to make up the difference.

“Total Revenue and Grants is projected at GH¢143,956 million (18.0% of GDP) and is underpinned by permanent revenue measures – largely Tax revenue measures – amounting to 1.35 percent of GDP as outlined in the revenue measures. Mr. Speaker, Total Expenditure (including clearance of Arrears) is projected at GH¢205,431 million (25.6% of GDP). This estimate shows a contraction of 0.3 percentage points of GDP in primary expenditures (commitment basis) compared to the projected outturn in 2022 and a demonstration of Government’s resolve to consolidate its public finances”, the Minister said.

Out of the amount, GH¢45 billion will be spent as compensation for employees which represents 5.6% of the Gross Domestic Product (GDP).

Also, GH¢8.048 million will be expended on goods and services which will cover 1.0% of GDP adding “Interest Payment is projected at GH¢53 billion representing 6.6%”.

“Mr. Speaker, grants to other government units are estimated at GH¢30,079 million, representing 3.8% of GDP. Mr. Speaker, Capital Expenditure (CAPEX) is projected at GH¢27.694 million representing 3.5% of GDP”.

“Mr. Speaker, Other Expenditure, mainly comprising Energy Sector Levies (ESL) transfers and Energy Sector Payment Shortfalls is estimated at GH¢26,739 million.”