2020 revenue target set at GHC67.1bn

Government is projected to achieve GHc 67.1 billion in total revenue, representing 16.9 percent of GDP, in the 2020 fiscal year.

This was made known by the Finance Minister, Ken Ofori-Atta, during the presentation of 2020 Budget Statement and Economic Policy, presented to Parliament in Accra.

Of the total expected revenue for the period, GHc 65.8 billion is projected to be from domestic revenue, representing an annual growth of 22.5 percent over the projected outturn for 2019.

The government is anticipating an increase in grants disbursement from development partners to the tune of GHc 1.2 billion, translating into 0.3 percent of GDP. This represents a nominal growth of 48.8 percent over the projected funds of GHc 833.2 million in 2019.

Nevertheless, the projected revenue falls short of government’s projected total expenditure, including clearance of arrears, by over GHc 18.9 billion, equivalent to 4.7 percent of GDP, for the 2020 fiscal year.

Projected expenditure

According to the Minister, the government expects to spend a total of GHc 85.9 billion – 21.6 percent of GDP in 2020. This represents a growth of 21.2 percent above the projected outturn for 2019.

Out of the projected expenditure for 2020, wages and salaries are projected at GHc 22.9 billion, translating into 26.7 percent of the total expenditure, including arrears clearance.

Use of Goods and Services is also projected at GHc 8.3 billion, 2.1 percent of GDP and 9.7 percent of the total expenditure, while interest payments on public debt is projected at GHc 21.7 billion, 5.4 percent of GDP.

The Finance Minister noted that in order to reduce the budget rigidities and create fiscal space to fund growth-enhancing expenditures, government will continue with the implementation of the Earmarked Funds Capping and Realignment Act.

“Consequently, transfers to Statutory Funds as well as all other earmarked funds are estimated at GHc 15.6 billion (3.9 percent of GDP) in 2020, representing 19.6 percent growth over the projected outturn for 2019,” Ofori-Atta added.

Capital expenditure for the period is projected at GHc 9.3 billion, representing a 53.5 percent increase over the 2019 projected outturn.

Of this amount, domestic financed capital expenditure is estimated at GHc 3.8 billion, while foreign financed capital expenditure is estimated at GHc 5.5 billion, to be funded by a combination of project grants and loans.