The Finance Minister has disclosed that the total Revenue and Grants for 2022 is projected to rise to GH¢100.5 billion, equivalent to 20.0 percent of GDP, up from a projected outturn of GH¢70.3 billion, equivalent to 16.0 percent of GDP for 2021.
Delivering the 2022 budget statement today, Wednesday, November 17, 2021, he said Domestic Revenue is estimated at GH¢99.5 billion and represents an annual growth of 44.0 percent over the projected outturn for 2021.
He stated that the resource mobilisation for 2022 is underpinned by revenue policy initiatives.
” The increase in Domestic Revenue by 44.0 percent is as a result of the impact of a major progressive tax policy, (“Baako P3”) complemented by improvements in tax compliance and reforms in revenue administration that we have outlined in this budget.”
On resource allocation for 2022, he said Total Expenditure (including clearance of Arrears) is projected at GH¢137.5 billion, equivalent to 27.4 percent of GDP.
The estimate for 2022 represents a growth of 23.2 percent above the projected outturn of GH¢111.6 billion, equivalent to 25.3 percent of GDP for 2021.
The key drivers of expenditure growth include Capital Expenditure, funding of key Government flagship programmes, wage bill, and interest payments, he disclosed.
”Expenditure, the 2022 fiscal operations will result in an overall fiscal deficit of GH¢37.0 billion, equivalent to 7.4 percent of GDP. This includes the financial sector and energy sector IPPs payments. This represents a nominal year-on-year reduction of about 30.7 percent over the projected outturn of 12.1 percent of GDP in 2021.
The corresponding Primary surplus of GH¢435 million, equivalent to 0.1 percent of GDP, is also projected for the year. The signalling is clear. We are going to judiciously work our way out of our debt situation,” the Minister said.
He continued: ”Mr. Speaker, total Foreign financing of the deficit as well as exceptional financing, namely the IMF’s Special Drawing Rights (SDR) will amount to GH¢9.1 billion, equivalent to 1.8 percent of GDP and will include a planned international financing programme (not to exceed USD 1Bn) to raise up to US$750 million for liability management and budget support, particularly, capital expenditure.
On the other hand, financing of the deficit from domestic sources, including net issuances from debt will amount to GH¢27.9 billion, equivalent to 5.6 percent of GDP. The additional exceptional financing from the utilisation of the newly allocated SDRs by the IMF will augment and reduce domestic borrowing needs.”
By: Rainbowradioonline.com/Ghana
