The Ghana government has spent above its projected target for salaries in the first six months of 2013, paying GH¢4.7 billion as against GH¢4.3 billion to employees, the Bank of Ghana has said.
Its interest payments also amounted to GH¢2.2 billion, which is above the projected target of GH¢1.6 billion.
Meanwhile, preliminary data for the first half of the year indicate that, both revenue and expenditure were below their respective targets for the period.
“The budget recorded an overall deficit (cash basis) of 4.5 percent of GDP which was within target for the period,” the governor of the Bank of Ghana, Dr. Kofi Wampah told journalists in Accra Wednesday July 31, 2013.
According to Dr. Wampah non-tax revenues for the period amounted to GH¢2.2
billion higher than the budgeted target of GH¢2.0 billion.
He indicated that total expenditures, including payments for the clearance of arrears and outstanding commitments for the first half of 2013 amounted to GH¢13.5 billion, compared to the target of GH¢14.6 billion.
“Employee Compensation for the half year amounted to GH¢4.7 billion, against a target of GH¢4.3 billion. Similarly, interest payments amounted to GH¢2.2 billion, against a target of GH¢1.6 billion,” he said.
The stock of public debt, he said, increased to GH¢39.1 billion (43.9% of GDP) as at the end of June 2013, from GH¢35.1 billion in December 2012.
“Out of the total public debt stock, the domestic component amounted to GH¢20.9 billion compared to GH¢18.5 billion in December 2012. External debt stock also stood at US$9.3 billion up from US$8.8 billion over the same period,” he noted.
The deficit of GH¢4.0 billion (4.5% of GDP) was financed mainly from domestic sources, resulting in a Net Domestic Financing (NDF) of GH¢3.0 billion, lower than the budget target of GH¢3.2 billion. Foreign financing of the budget amounted to GH¢1.0 billion, he said.
He said total revenue and grants was GH¢9.5 billion, against a target of GH¢10.6 billion.
“Of this outturn, domestic revenue amounted to GH¢9.0 billion, below the target of GH¢9.8 billion. Total tax revenue amounted to GH¢6.7 billion, compared to the target of GH¢7.7 billion. This was as a result of underperformance of almost all the tax types, reflecting lower imports and energy sector challenges. Grant disbursements amounted to GH¢507.6 million, 41.8 percent below target,” he added.
By Emmanuel K. Dogbevi