By Kofi AHOVI
Ghana’s fiscal operations during the first quarter of this year resulted in a narrow deficit of GH¢819.2 million or 1.5% of the rebased Gross Domestic Product (GDP) compared with a deficit of GH¢621.4 million or 1.4% of GDP for the corresponding period in 2010.
According to data released last week from the Bank of Ghana (BoG), the narrow deficit excluding arrears clearance of GH¢209.9 million, declined to GH¢552.4 million or one per cent of GDP.
This is significantly lower than the rate of deficit build up during the first half of 2010 when government incurred a deficit on cash basis, excluding arrears clearance, of 3.2% of GDP (translating to a quarterly average of 1.6% of GDP).
However, the apparent slowdown in fiscal deficit build up expressed as a proportion of GDP, so far this year, when compared with last year, is partly because of the rebasing of Ghana’s GDP in November last year which increased the size of the GDP by some 60%.
However, there have been real gains; the fiscal deficit for the first quarter of 2011, including clearance of arrears, at GHc819.2 million is slightly below the fiscal deficit for the first half of 2010 of GHc821.8 million, which did not even take into account the GHc445 million clearances of arrears on the Tema Oil Refinery (TOR) debt.
The deficit of GH¢819.2 million, was financed by a net domestic borrowing of GH¢570.6 million equivalent to 1.1% of GDP and a net foreign loan inflow of GH¢248.6 million equivalent to 0.5% of GDP.
The governor of the central bank, Kwesi Amissah-Arthur, who announced the government’s fiscal position last week, said “provisional data on government’s fiscal operations during the first quarter of 2011 indicate a strong revenue performance. However, the increase in revenue was matched by an equally strong increase in expenditure.”
Total revenue and grants for the first quarter of 2011 amounted to GH¢2.2 billion representing 4.1% of GDP. Total Customs collections comprising import duties, import VAT, petroleum taxes and National Health Insurance Levy (NHIL) receipts amounted to GH¢807.9 million, an annual growth of 67.3% Domestic collections of direct taxes and VAT for the period amounted to GH¢ 752.4 million. Grants of GH¢139.2 million was also recorded. The difference was made up of other revenues of GH¢500.5 million.
Total expenditure, excluding foreign financed capital expenditure, for the first quarter of 2011 amounted to GH¢2.7 billion equivalent to 5.2% of GDP. Wages and salaries and related expenditures amounted to GH¢869.6 million equivalent to 1.6% of GDP absorbing close to 42.1% of domestic revenues.
Ghana’s fiscal operations during the first quarter of this year resulted in a narrow deficit of GH¢819.2 million or 1.5% of the rebased Gross Domestic Product (GDP) compared with a deficit of GH¢621.4 million or 1.4% of GDP for the corresponding period in 2010.
According to data released last week from the Bank of Ghana (BoG), the narrow deficit excluding arrears clearance of GH¢209.9 million, declined to GH¢552.4 million or one per cent of GDP.
This is significantly lower than the rate of deficit build up during the first half of 2010 when government incurred a deficit on cash basis, excluding arrears clearance, of 3.2% of GDP (translating to a quarterly average of 1.6% of GDP).
However, the apparent slowdown in fiscal deficit build up expressed as a proportion of GDP, so far this year, when compared with last year, is partly because of the rebasing of Ghana’s GDP in November last year which increased the size of the GDP by some 60%.
However, there have been real gains; the fiscal deficit for the first quarter of 2011, including clearance of arrears, at GHc819.2 million is slightly below the fiscal deficit for the first half of 2010 of GHc821.8 million, which did not even take into account the GHc445 million clearances of arrears on the Tema Oil Refinery (TOR) debt.
The deficit of GH¢819.2 million, was financed by a net domestic borrowing of GH¢570.6 million equivalent to 1.1% of GDP and a net foreign loan inflow of GH¢248.6 million equivalent to 0.5% of GDP.
The governor of the central bank, Kwesi Amissah-Arthur, who announced the government’s fiscal position last week, said “provisional data on government’s fiscal operations during the first quarter of 2011 indicate a strong revenue performance. However, the increase in revenue was matched by an equally strong increase in expenditure.”
Total revenue and grants for the first quarter of 2011 amounted to GH¢2.2 billion representing 4.1% of GDP. Total Customs collections comprising import duties, import VAT, petroleum taxes and National Health Insurance Levy (NHIL) receipts amounted to GH¢807.9 million, an annual growth of 67.3% Domestic collections of direct taxes and VAT for the period amounted to GH¢ 752.4 million. Grants of GH¢139.2 million was also recorded. The difference was made up of other revenues of GH¢500.5 million.
Total expenditure, excluding foreign financed capital expenditure, for the first quarter of 2011 amounted to GH¢2.7 billion equivalent to 5.2% of GDP. Wages and salaries and related expenditures amounted to GH¢869.6 million equivalent to 1.6% of GDP absorbing close to 42.1% of domestic revenues.
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