Ghana’s progress in exceeding non-oil revenue targets for the first six months of the year has been laudable, according to Ghana’s Finance Minister, Ken Ofori-Atta.
Despite occasional deficits in Value Added Tax (VAT) collections, Ghana has seen advances in non-oil tax revenue collection, according to the minister.
He was quick to point out, however, that expectations for oil revenues had not been met due to fluctuations in global oil prices.
To address the issue, he stated that the government will conduct a downward evaluation of oil-related revenue and matching expenditures to align with the current underperformance of oil revenue.
He said this while presenting the Mid-Year Budget to Parliament on July 31, 2023.
He highlighted that the revision in oil-related revenue will have a direct impact on the Annual Budget Funding Amount (ABFA).
He said the revision in revenue projections, along with lower domestic interest payments and amortization after the completion of a portion of the Debt, Domestic Debt Payment (DDEP), and a reduction in foreign-financed Capital Expenditure (CAPEX), has led to a revision in the Appropriation from GHS 227.7 billion, as initially presented and approved in November 2022, to GHS 206.0 billion.
The revision in the Appropriation aligns with Regulation 24 sub-regulation (3) of the Public Financial Management Act Regulations 2019 (L.I. 2378).
He further assured Parliament that the government will not require a supplementary budget to address the shortfall in oil revenues and the corresponding expenditure adjustments.