By Kofi Ahovi
A 2009 mid year review of Ghana’s economy by the Institute of Statistical Social and Economic Research (ISSER) indicates that government has met 84% of its targets for the first half of 2009.
ISSER also described the remaining half year as brighter than it initially appeared. “Prospects for the current second half year appear to be brighter than initial,” the reported stated.
The government’s total expenditure by the end of June 2009 stood at GH¢3,075,900 representing 14.2% of Gross Domestic Product (GDP) as against GH¢ 2,707,800 representing 15.4% of GDP in 2008.
Revenue and grants for the same period stood at GH¢2,652,000 representing 12.3% of GDP while that of 2008 was GH¢2,147,200 representing 12.2% of GDP.
Government’s expenditure on the other hand though higher than the previous year, it was lower with respect to GDP. The government spent GH¢3,075,500 representing 14.2% of GDP for 2009 as against GH¢2,707,800 representing 15.4% of GDP.
Gross domestic debt stood at GH¢5,288,200 representing 24.5% GDP for 2009 and GH¢4,800,200 amounting to 27.2% of GDP for 2008. While external debt was GH¢4,207,000 for 2009 and US$4,035,070 for 2008 amounting to 28.5% of GDP.
African economies grew at a rate of 5.2% in 2008, over a percentage point less than the projected 6.3% for the year.
Total remittances to Africa in 2008 amounted to US$38.61 billion and this was an increase over the 2007 figure of US$23.1 billion
In 2008, Ghana’s services sector grew by 9.3%, compared with 8.1% for industry and 5.1% for agriculture. Growth in the services sector was 1.1and 2.0 percentage points higher than the 2007 figure and target for 2008 respectively.
This was largely a result of developments in the finance, insurance, real estate and business services subsector, in which growth has since 2005 averaged 10.8%. Growth in transport, storage and communication subsector was also high at 10%
Poor fiscal management in 2008 led to the highest deficit since 2001, with domestic revenue increasing only marginally from 26.1% of GDP in 2007 to 27.9% of GDP in 2008, whereas primary expenditure jumped from 32.3% of GDP in 2007 to 38.2% of GDP in 2008, a 5.9 percentage point increase
Total receipts rose to 55.5% of GDP from 42.2% of GDP in 2007, an increase of almost 13 percentage points, and this increase came largely from the item ‘other receipts’, particularly the rise in divestiture receipts.
There was a rise of 2.5 percentage points in the total revenue recorded in 2008. This came from an increase tax revenues. Direct taxes as a major component of total revenue performed quite well during the year with improved efficiency in the Pay As You Earn (P.A.Y.E.) system. Indirect taxes fell marginally below the budget estimate as a result of the poor performance of petroleum prices
A 2009 mid year review of Ghana’s economy by the Institute of Statistical Social and Economic Research (ISSER) indicates that government has met 84% of its targets for the first half of 2009.
ISSER also described the remaining half year as brighter than it initially appeared. “Prospects for the current second half year appear to be brighter than initial,” the reported stated.
The government’s total expenditure by the end of June 2009 stood at GH¢3,075,900 representing 14.2% of Gross Domestic Product (GDP) as against GH¢ 2,707,800 representing 15.4% of GDP in 2008.
Revenue and grants for the same period stood at GH¢2,652,000 representing 12.3% of GDP while that of 2008 was GH¢2,147,200 representing 12.2% of GDP.
Government’s expenditure on the other hand though higher than the previous year, it was lower with respect to GDP. The government spent GH¢3,075,500 representing 14.2% of GDP for 2009 as against GH¢2,707,800 representing 15.4% of GDP.
Gross domestic debt stood at GH¢5,288,200 representing 24.5% GDP for 2009 and GH¢4,800,200 amounting to 27.2% of GDP for 2008. While external debt was GH¢4,207,000 for 2009 and US$4,035,070 for 2008 amounting to 28.5% of GDP.
African economies grew at a rate of 5.2% in 2008, over a percentage point less than the projected 6.3% for the year.
Total remittances to Africa in 2008 amounted to US$38.61 billion and this was an increase over the 2007 figure of US$23.1 billion
In 2008, Ghana’s services sector grew by 9.3%, compared with 8.1% for industry and 5.1% for agriculture. Growth in the services sector was 1.1and 2.0 percentage points higher than the 2007 figure and target for 2008 respectively.
This was largely a result of developments in the finance, insurance, real estate and business services subsector, in which growth has since 2005 averaged 10.8%. Growth in transport, storage and communication subsector was also high at 10%
Poor fiscal management in 2008 led to the highest deficit since 2001, with domestic revenue increasing only marginally from 26.1% of GDP in 2007 to 27.9% of GDP in 2008, whereas primary expenditure jumped from 32.3% of GDP in 2007 to 38.2% of GDP in 2008, a 5.9 percentage point increase
Total receipts rose to 55.5% of GDP from 42.2% of GDP in 2007, an increase of almost 13 percentage points, and this increase came largely from the item ‘other receipts’, particularly the rise in divestiture receipts.
There was a rise of 2.5 percentage points in the total revenue recorded in 2008. This came from an increase tax revenues. Direct taxes as a major component of total revenue performed quite well during the year with improved efficiency in the Pay As You Earn (P.A.Y.E.) system. Indirect taxes fell marginally below the budget estimate as a result of the poor performance of petroleum prices
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