- August 16, 2022
- Posted by: Charles Yeboah Nixon
- Categories: Banking and Finance, Economics, Finance, Forex, Grants
Total expenditures and arrears clearance, for the first five months of 2022, summed up to GH¢48.87 billion (9.7% of Gross Domestic Product).
This is below the target of GH¢51.81 billion (10.3% of GDP).
According to the July 2022 Monetary Policy Report of the Bank of Ghana, this outturn represented a year-on-year growth of 26.1%. The outturn was also 94.3% of the target.
Compensation of Employees (including wages and salaries, pensions & gratuities, and other wage related expenditure) was GH¢13.51 billion, lower than the target of GH¢14.93 billion.
This outturn represented 90.5% of the target.
In terms of fiscal flexibility, compensation of employees constituted 46.1% of domestic revenue mobilised at the end of the first five months of 2022, lower than the 48.7% recorded in the corresponding period of 2021.
Use of Goods and Services for the period under review totalled GH¢1.23 billion, lower than the expected target of ¢2.91 billion. The outturn was 57.6% below the target but recorded a year-on-year growth of 105.7%.
Total interest payments was GH¢17.84 billion, higher than the envisioned target of GH¢16.54 billion.
Domestic interest payments accounted for 76.7% of the total interest payments.
For the period under review, total interest payments constituted 60.9% of domestic revenue, up from 54.5% recorded in the corresponding period of 2021.
Grants to other government units, made up of National Health Fund, Education Trust Fund (GET Fund), Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to GNPC and other earmarked funds, all summed up to GH¢7.93 billion, lower than the envisioned target of GH¢9.63 billion.
This represented a shortfall of 17.7%.
It, however, recorded a year-on-year growth of 54.8%.
Other expenditure, made up of ESLA Transfers, Covid-19 related expenditure, and Other critical spending, for the first five months of 2022, was GH¢3.24 billion.
ESLA transfers of GH¢1.47 billion was lower than the expected target of GH¢1.70 billion.
Other Expenditure was 22.8% above the target of GH¢2.64 billion for the review period.