The Akufo-Addo administration has outlined a revenue projection of GH¢176.4 billion for the year 2024.
Finance Minister Ken Ofori-Atta disclosed this information during his budget presentation to parliament on Wednesday, November 15, 2023.
Despite this projected revenue, the government plans to allocate a total expenditure (commitment) of GH¢226.7 billion, as stated by Mr. Ofori-Atta.
The total revenue and grants for 2024 are expected to be GH¢176.4 billion, constituting 16.8 percent of the GDP. This revenue projection relies on permanent revenue measures, primarily tax revenue measures, amounting to 0.9 percent of the GDP.
The Finance Minister clarified that the total expenditure (commitment basis) projection for 2024 represents a decrease of 6.1 percentage points of GDP compared to the 2022 outturn.
“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 points and primary expenditure by 4.0 percentage points of GDP”, he noted.
The minister said the potential interest rate saving from the ongoing external debt operation “will further bolster public finance sustainability”.
In terms of budget balances and financing operations for 2024, Mr. Ofori-Atta conveyed that, according to the estimates for total revenue and grants and total expenditure (including arrears clearance), the overall budget balance to be financed is a fiscal deficit of GH¢61.9 billion, equivalent to 5.9 percent of GDP.
Additionally, he noted that the corresponding primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6 percent of GDP.