Government’s expenses on compensation of employees have exceeded the programmed target.
A total of to GH¢8,141.2 million was spent on compensations a figure which exceeded the projected target by GH¢133.9 million or 1.7 percent, of this amount, expenses on Wages and Salaries amounted to GH¢7,131.6 million, 4.1 percent higher than the programmed target of GH¢6,852.0 million and accounting for the overage in Compensation of Employees.
The reason for the slippage is attributed to budget overruns recorded by the Ministries of Education and Health, the Finance Minister Ken Ofori-Atta told Parliament when he presented the mid-year budget review.
Meanwhile, corrective measures such as the complete roll out of the HRMIS are being employed to ensure that the excess are curtailed in the second half of the year, he assured the House.
Similarly, expenses on the use of Goods and Services which amounted to GH¢1,627.0 million was about 9.0 percent higher than the programmed target.
The slippage is mainly attributed to front-loaded expenditures including those for the purchase of fertilizer for the Planting for Food and Jobs programme. These overruns are not expected to recur in the second half of the year.
Total expenditure (including arrears clearance) amounted to GH¢23,756 million (9.8% of GDP) and constitutes 38.3 percent of the annual 21 budget target. Although, the outturn was 3.2 percent lower than the programmed target of GH¢24,553 million, moderate slippages were observed in the Wage Bill (GH¢279.6 million) and Goods and Services (GH¢134.1 million).
Interest Payment remained within the programmed target for the period but is expected to pick up, given the impact of the bond issued by government on behalf of GCB Bank on the Purchase and Assumption of UT Bank and Capital Bank. 89. Mr. Speaker, Grants to Other Government Units, comprising transfers to Statutory and Earmarked Funds such as the National Health Insurance Fund (NHIF), the Ghana Education Trust Fund (GETFund), the District Assemblies Common Fund (DACF), among others, remained lower than the programmed target mainly on account of lower tax revenues and reported IGF retained by MDAs.
Total CAPEX, comprising Domestically Financed CAPEX and Foreign Financed CAPEX was 39.6 percent lower than target.
Although Domestically Financed CAPEX was below target, it showed a stronger performance, compared to the same period in 2017 and 2016.
Domestically Financed CAPEX amounted to GH¢438.4 million (or 13.1 percent of the annual target) compared to a programmed target of GH¢1,125.4 million.
The Minister also announced to the House that commencement certificates amounting to about GH¢1,000 million have been issued for capital projects.
He said a significant portion of programmed arrears for 2018 has been cleared compared to the programmed target.
Total clearance of arrears amounted to GH¢807.4 million against a target of GH¢394.9 million. The total clearance constitutes 94.1 percent of the annual target.