Government is projecting GH¢ 67.1 (16. 9℅ of GDP) billion as total revenue and grants for 2020.
The amount represent an upward projected outturn for 2019 of GH¢ 54.6 billion (15.8℅ of GDP).
Finance Minister Ken Ofori-Atta made this known in Parliament on Wednesday November 13, 2019, as he presented the 2020 Budget Statement and Economic Policy of the President Nana Akufo-Addo’s Government.
The presentation of the Budget Statement is in accordance with Article 179 of the 1992 Constitution of the Republic of Ghana, and Section 21(3) of the PFM ( Public Financial Management) Act 2016 (ACT 921).
He said domestic Revenue is estimated at GH¢65.8 billion, representing an annual growth of 22.5 percent over the projected outturn for 2019. Grants disbursement from Development Partners is estimated at GH¢1.2 billion (0.3% of GDP) and a nominal growth of 48.8 percent over the projected outturn of GH¢833.2 million in 2019.
He noted that “the following macroeconomic targets are set for the medium term (2020-2023): Overall Real GDP growth to average 5.7 percent for the period; Non-Oil Real GDP to grow at an average of 5.9 percent for the period;
Inflation to be within the target band of 8±2 percent; Overall fiscal deficit to remain within the Fiscal Responsibility Act Threshold of not more than 5 percent of GDP; the primary balance to be in a surplus; andGross International Reserves to cover at least 3.5 months of imports of goods and services.”
He added that based on the overall macroeconomic objective of “Consolidating the Gains for Growth, Jobs, and Security”, the following specific macroeconomic targets have been set for the 2020 fiscal year:
Overall Real GDP growth of 6.8 percent;
Non-Oil Real GDP growth of 6.7 percent;
End-period inflation of 8.0 percent;
Fiscal deficit of 4.7 percent of GDP;
Primary surplus of 0.8 percent of GDP; and Gross International Reserves to cover not less than 3.5 months of imports of goods and services.
“Following our significant progress in restoring macroeconomic stability over the past 32 months, we will continue to implement policies and programmes to ensure the fulfilment of our promises to our people,” he said.
Resource Allocation for 2020
Total Expenditure (including clearance of Arrears), he said, is projected at GH¢85.9 billion (21.6% of GDP) in 2020.
The expenditure estimate for 2020 represents a growth of 21.2 percent above the projected outturn for 2019, according to him.
Wages and salaries, he noted, are projected at GH¢22.9 billion and constitute 26.7 percent of the Total Expenditure (including Arrears clearance).
“Use of Goods and Services is also projected at GH¢8.3 billion (2.1% of GDP) and 9.7 percent of the Total Expenditure (incl. Arrears clearance). Interest Payments on public debt is projected at GH¢21.7 billion (5.4% of GDP),” he added.
Government will continue with the implementation of the Earmarked Funds Capping and Realignment Act to reduce budget rigidities and create fiscal space to fund growth-enhancing expenditures, he stated.
“Consequently, transfers to Statutory Funds as well as all other earmarked funds are estimated at GH¢15.6 billion (3.9% of GDP) in 2020, representing 19.6 percent growth over the projected outturn for 2019,” he added.