Ghana’s total expenditure in 2022 is projected at ¢128.3 billion which will be 25.8% of GDP.
Data from the Ministry of Finance indicate that total expenditure (including payments for the clearance of arrears) is projected at ¢128.3 billion (25.8% of GDP) in 2022.
This means government expenditure in 2022 is expected to increase by almost 13% relative to the ¢113.8 billion expenditure in 2021.
In terms of revenue mobilization, the government intend to raise an amount of ¢89.1 billion (17.9% of GDP) for 2022 and represents a nominal growth of 23% over the projected outturn for 2021.
Further analysis shows that the overall budget deficit (including fitness and IPPs cost) is projected at ¢39.2 billion (7.9% of GDP) for 2022.
The ministry also noted that for the second time in a row, interest payments are expected to be higher than the compensation of employees. “Interest payments are projected at ¢37.2 billion (7.5% of GDP) in 2022”.
Additionally, “compensation of employees is projected to increase from ¢31.5 billion (7.2% of GDP) in 2021 to ¢34.6 billion (7.0% of GDP) in 2022”.
Interest payments and compensation of employees for decades have been the two main components of the government’s annual expenditure accounting for a little over 58% of expenditure in 2021.
For the first time in 2021, the government spent more on interest payments (¢30.3 billion) relative to compensation (¢35.9 billion).