- June 27, 2022
- Posted by: Charles Yeboah Nixon
- Categories: Banking and Finance, Economics, Finance, Grants
The Bank of Ghana wants aggressive revenue mobilisation and strong controls in the ensuing quarters of 2022.
This is the only way it believes will help achieve the end-year budget deficit of 7.4% of Gross Domestic Product (GDP) and primary surplus of 0.1% of Gross Domestic Product.
In its Monetary Policy Report, the Central Bank said the fiscal data shows that revenue outturn was behind target at the end of March 2022, while expenditures was broadly on target.
This is despite concerns about the accumulation of arrears, particularly with regard to some statutory payments.
The fiscal deficit for the first quarter of 2022 was equivalent to 2.6% of GDP, above the expected target of 2.3% of GDP.
Government budgetary operations resulted in an overall budget deficit of GH¢1.929 billion (2.6% of GDP) at the end of the first three months of 2022.
This was higher than the expected target of GH¢11.470 billion (2.3% of GDP).
In addition, the primary balance for the period under review recorded a deficit of 0.5% of GDP, above the estimated deficit target of 0.3% of GDP.
The overall fiscal deficit of GH¢12.929 billion was financed from both domestic and external sources. Domestic financing (net) for the period under review was GH¢14.614.5 billion (2.9% of GDP), substantially higher than the expected target of GH¢12.100 billion (2.4% of GDP).
Foreign financing on the other hand, amounted to a net inflow of GH¢1.513 billion (0.3% of GDP), higher than the target of GH¢464.6 million (0.1 % of GDP).