2024 Budget: Government to spend ¢226.7 billion next year – Finance Minister

 

Government is hoping to spend a total of ¢226.7 billion in 2024.

This will represent 21.6 percent of the Ghana’s Gross Domestic Product (GDP).

Speaking in parliament during the 2024 Budget presentation, Finance Minister, Ken Ofori-Atta explained that the projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022.

“This large decrease comes from the combination of fiscal consolidation efforts of 4.9 percentage points of GDP, reflecting an adjustment in revenue by 1.0 percentage point and primary expenditure by 4.0 percentage point of GDP”, he said.

He expressed hope that the potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability.

According to him, based on the estimates for Total Revenue and Grants and Total Expenditure, which include arrears clearance, the overall Budget balance to be financed is estimated at a fiscal deficit of ¢ 61.9 billion, equivalent to 5.9 percent of GDP.

He announced that Total Revenue and Grants is projected at ¢176.4 billion and is underpinned by permanent revenue measures largely Tax revenue measures amounting to 0.9 percent of GDP.

He added that the corresponding Primary balance will be a deficit of ¢5.9 billion, equivalent to 0.6 percent of GDP.

Touching some measures aimed at improving revenue collection, Mr. Ofori-Atta said, the Ministry of Finance, acting through the Ghana Revenue Authority (GRA) introduced the property rate reform project.

The objective, he pointed out is to develop a unified common platform capable of billing, collecting, and reporting property rates nationwide.

He stated that the number of billable properties has seen a substantial increase, with a pre-2023 count of 1.3 million properties escalating to 12.42 million representing an 856 percent surge in properties identified that can now be properly billed.

Similarly, the identification of registered persons and entities associated with billable properties has increased by 831 percent, from 186,542 to 15.68 million.

He however regretted that despite the achievements, the initiative has encountered some challenges, making it difficult for the relevant bodies including the Metropolitan, Municipal and District Assemblies to have access to their share of the property rate collections on time.

“To address these challenges, Government is reviewing the overall structures and processes to determine the optimal way forward. In the interim, Districts will resume collection until these challenges are resolved”.

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