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Gov’t operations result in GH¢2.4bn deficit


By Kofi AHOVI
Preliminary data shows that Ghana has recorded a narrow budget deficit of GH¢2.4 billion for the first five months of this year.

The deficit, together with a net foreign loan repayment of GH¢119.7 million, created a resource gap of GH¢2.5 billion, which was financed from domestic sources. The banking sector financed 58.9% of the deficit, with the non-bank sector financing the remaining 41.1%.

The data from Bank of Ghana shows that the country’s total expenditure for the same period amounted to GH¢7.5 billion, representing a year-on-year growth of 44.9%. Of this, statutory payments amounted to GH¢5.4 billion, comprising mainly of wage-related payments of GH¢4 billion and discretionary payments of GH¢2.1 billion, representing 38.9% of total payments.

Meanwhile, total revenue and grants recorded for the period was GH¢5.1 billion, representing a year-on-year growth of 34.5%. Total tax revenue was GH¢4.4 billion, 46.3% higher than the outturn of GH¢3 billion recorded during the corresponding period in 2011. During the period, disbursements of grants amounted to GH¢293.8 million.

According to the data, the stock of public debt was GH¢25.8 billion at the end of April 2012, increasing from the GH¢24 billion recorded at the end of 2011.

In relation to GDP, the total public debt increased from 42.6% at the end of December 2011 to 42.7% at end April 2012. The domestic component of the public debt was GH¢12.6 billion in April 2012 while the external component was US$7.8 billion.

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