The government is targeting to spend an estimate of GHS 137.5 billion for 2022.
The figure, which is equivalent to 27.4 percent of Gross Domestic Product (GDP), is however higher than the GHS 100.5 billion the government is seeking to raise as total revenue.
Finance Minister, Ken Ofori-Atta, during the presentation of the 2022 Budget Statement and Economic Policy identified capital expenditure, funding of key government flagship programs, wage bill, and interest
payments as key drivers of expenditure growth.
He said the estimate for 2022 represents a growth of 23.2 per cent above the projected outturn of GHS 111.6 billion, equivalent to 25.3 percent of GDP for 2021.
Conversely, the projected GHS 100.5 billion total revenue and grants, is equivalent to 20.0 percent of GDP; an increase of GHS 70.3 billion, equivalent to 16.0 percent of GDP for the previous year.
Domestic revenue has been estimated at GHS 99.5 billion.
“Mr. Speaker, based on the estimates for Total Revenue & Grants and Total Expenditure, the 2022 fiscal operations will result in an overall fiscal deficit of GH¢37.0 12 billion, equivalent to 7.4 percent of GDP. This includes the financial sector and energy sector IPPs payments.”
“This represents a nominal year-on-year reduction of about 30.7 percent over the projected outturn of 12.1 percent of GDP in 2021. The corresponding primary surplus of GH¢435 million, equivalent to 0.1 percent of GDP, is also projected for the year. The signalling is clear. We are going to judiciously work our way out of our debt
the situation”, the Finance Minister said.
GDP growth rate
The government has also targeted an overall (GDP) growth target for the year 2022 at 5.8%,
Initially, the government targeted a 5.0% GDP growth rate following a year affected by the COVID-19 pandemic.
This is however from the 5.1 % the government projected during the 2021 mid-year budget review.
“Based on the macroeconomic objectives and the medium-term targets, the following macroeconomic targets are set for 2022: Overall Real GDP growth of 5.8%, non-oil real GDP growth of 5.9%, an End-December inflation rate of 8%, fiscal deficit of 7.4% of GDP, a primary surplus of 0.1% of GDP; and gross international reserves to cover not less than four months of imports.”