Fiscal deficit widens to 5% of GDP in 5 months of 2022 – BoG

Provisional data on budget execution for January to May 2022 indicated an overall broad fiscal deficit on a cash basis of 5.0% of Gross Domestic Product.

This is against a programmed target of 3.5% of GDP.

According to data from the Bank of Ghana, the corresponding primary balance for the period was a deficit of 1.4% of GDP, against a deficit target of 0.2% of GDP.

Over the period, total revenue and grants amounted to GH¢29.5 billion (5.9% of GDP), below the projected GH¢34.8 billion (6.9% of GDP).

Total expenditure was GH¢48.9 billion (9.7% of GDP), below the programmed target of GH¢51.8 billion (10.3% of GDP).

These developments, the Central Bank said impacted the stock of public debt which increased to 78.3% of GDP (GH¢393.4 billion) at the end of June 2022.

This is compared with 76.6% of GDP (GH¢351.8 billion) at the end of December 2021.

Of the total debt stock, domestic debt was GH¢190.1 billion (37.8% of GDP), while the external debt was GH¢203.4 billion (40.5% of GDP).