2024 budget: Govt’s expenditure exceeds total revenue projected

The sector minister for finance, Ken Ofori-Atta in reading the government’s fiscal policy for 2024 in parliament on November 15, 2023 indicated that the estimated total revenue is projected up to a tune of GH¢176.4 billion.

Hon Kenneth Ofori-Atta outlined the economic policy penned in the 2024 budget for which government anticipate a total expenditure of GH¢226.7 billion which represents 21.6 percent of the total Gross Domestic Product (GDP).

“Mr. Speaker, total revenue and grants are projected at GH¢176.4 billion which represents 16 percent of GDP and is underpinned by permanent revenue measures largely Tax revenue measures amounting to 0.9 percent of GDP.

“Total expenditure is projected at GH¢226.7 billion which represents 21.6 percent of GDP. This projection reflects a reduction of 6.1 percentage point of GDP in total expenditures to the outturn in 2022.

“This large decrease comes from the combination of fiscal consolidation efforts of 4.9 percentage points of GDP, reflecting an adjustment in revenue by 1.0 percentage point and primary expenditure by 4.0 percentage point of GDP.

“The potential interest rate savings from the ongoing external debt operations will further bolster public finance sustainability. Mr speaker, base on the estimates for Total revenue and Grants and Total expenditure including arrears clearance, the overall budget balance to be financed is a fiscal deficit of GH¢61.9 billion, equivalent to 5.9 per cent of GDP. The corresponding primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6 per cent of GDP.”