Finance Minister, Seth Terkper says based on the revenue and the expenditure estimates, the 2016 overall budget will result in an overall budget deficit of GHC 8.4 billion which represents a total of 5.3% of GDP.
Presenting the 2016 budget in parliament today, the finance minister indicated that government propose to finance the deficit from both domestic and foreign sources of which net domestic financing is estimated at GHC 5.5 billion and foreign financing which is GHC 3.8 billion.
According to Mr. Seth Tekper the total expenditure estimate in arears and outstanding commitments in 2016 is estimated at GHC 47.1 billion representing 27.9% of GDP.
The estimated expenditure represents 13.7% or an increase over the projected at 2015.
He indicated that, compensation for employees in public sector comprising allowances, wages and salaries, pensions, gratuity, contribution buy government is estimated at GHC 14 billion representing, 8.9% of GDP.
Expenditure on goods and services is estimated at GHC 2.5 billion representing 1.6% of GDP whiles the estimate on total interest payment is GHC 10.5 billion representing 6.6% of GDP or 22% of total expenditure.
Transfers for other government units including GNPC, NHIA, GET-FUND, road fund, GACIF is estimated at GHC 9.billion.
Mr. Seth Terkper added a total of GHC 6.6 billion is allocated for capital expenditure which is about 26.8% of total expenditure which will be financed domestically with the remaining being from a foreign sources.
Meanwhile expected grants is estimated at GHC 1.6 billion which is equivalent to 1% of GDP. The expected grants constitute 4.2% to the estimated total revenue and grants for the 2016 fiscal year.