- June 10, 2022
- Posted by: Charles Yeboah Nixon
- Categories: Banking and Finance, Economics, Finance, Grants
Total expenditures and arrears clearance for the first three months of 2022 amounted to GH¢26.953 billion, about 5.4% of Gross Domestic Product, the Bank of Ghana’s Monetary Policy Report has revealed.
This fell below the target of GH¢30.524 billion (6.1% of GDP). This outturn represented a year-on-year growth of 16.1%.
It was also 11.7% below the target.
Compensation of Employees including wages and salaries, pensions & gratuities, and other wage related expenditure was estimated at GH¢7.555 billion, 15.7% lower than the target of GH¢8.960 billion.
In terms of fiscal flexibility, compensation of employees constituted 45.5% of domestic revenue mobilised at the end of the first three months of 2022, lower than the 54.2% recorded in the corresponding period of 2021.
Use of Goods and Services for the period under review amounted to GH¢163.5 million, lower than the expected target of GH¢1.842 billion. The outturn was 91.1 percent below the target.
Total Interest Payments also amounted to GH¢10.608.billion over the review period, higher than the envisioned target of GH¢10.037 billion.
Domestic interest payments accounted for 82.7% of the total interest payments, while external interest payments constituted the remaining 17.3%.
Total interest payments constituted 63.8% of domestic revenue, down from 64.6% 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, amounted to GH¢4.459 billion, lower than the target of GH¢5.596 billion.
This represented a shortfall of 20.3% from the target, but recorded a year-on-year growth of 34.8%. Other Expenditure, made up of ESLA transfers, COVID-19 related expenditure, and other critical spending, for the first three months of 2022, amounted to GH¢2.225 billion.
ESLA transfers amounted to GH¢786.8 million, lower than the expected target of GH¢1.032 billion.
Other Expenditure was 80.4% below the target of GH¢1.233 billion for the review period.
Capital expenditures for the period under review amounted to GH¢1.940 billion (0.4% of GDP), lower than the programmed target of GH¢2.751 billion (0.6% of GDP) by 29.5%.
This outturn represented a year-on-year decline of 46.2%.
Foreign-financed capital expenditure accounted for 98% of the total, with domestic financed capital expenditure making up the remaining 2%.