BoG confirms Ghana’s fiscal deficit of 9.7% of GDP in 2021

The Bank of Ghana has reaffirmed Ghana’s fiscal deficit of 9.7% of Gross Domestic Product (GDP) recorded in 2021, lower than the 11.7% recorded in 2020.

This means that the nation missed the target of 9.4% of GDP marginally.

However, the deficit could be higher than 9.7% captured by the Central Bank because certain arrears might have been excluded from the total deficit.

Also, the country recorded a primary balance of -2.0% of GDP, lower than the -5.3% registered in 2020.

Over the year, total revenue and grants amounted to GH¢67.9 billion (15.4% of GDP).

This is below the projected GH¢72.5 billion (16.7% of GDP) target.

Also, total expenditure amounted to GH¢110.4 billion (25.1% of GDP), below the programmed target of GH¢113.8 billion (25.9% of GDP).

The Central Bank said these developments impacted the stock of public debt which increased to 80.1% of GDP (¢351.8 billion) at the end of December 2021.

This is compared with 76.0% of GDP (GH¢291.6 billion) at the end of December 2020.

Of the total debt stock, domestic debt was GH¢181.8 billion (41.4% of GDP), while the external debt was GH¢170.0 billion (38.7% of GDP).