The finance minister of Ghana, Ken Ofori-Atta will tomorrow read out the National budget for the year 2022 and according to multiple reports preview to ghanajoint.com, it is estimated that Ghana will spend a total of GHC128.3 billion for the upcoming year which will constitute 25.8% of the Gross Domestic Product (GDP).
Further data indicates that the total expenditure would include payments for and clearance of arrears. This revelation if revealed to be true in tomorrow’s budget reading would mean that Government expenditure in 2022 will be an increase of 13% from the previous year in which Government expenditure for that year was perked at GHC113.8 billion.
It is the intention of Government to raise an amount of GHC89.1 billion, constituting 17.9% of the gross domestic product for the year 2022 and also means a nominal growth of 23% from the projected out turn in 2021, where revenue mobilization is concerned.
The report further indicated that the overall budget deficit is estimated at GHC39.2 billion representing 7.9% of our gross domestic product for the year 2022. The report also revealed that for the second time running, interests payments are expected to be greater than compensation of employees. “Interest payments is projected at GHC37.2 billion (7.5% of GDP) in 2022”
Further more, “compensation of employees is projected to increase from GHC31.5 billion (7.2% of GDP) in 2021 to GHC34.6 billion (7.0% of GDP) in 2022”
Interest payments and employees compensation have taken up a huge chunk of Government’s annual expenditure accounting for more than 50% of total expenditure for decades.