The government has projected to spend GH¢226.7 billion (21.6 per cent of GDP) next year in its bid to build back better, maintain macroeconomic growth and stability as well as create jobs for the teeming youth.
At the same time, it was working to raise GH¢176.4 billion (16.8 per cent of Gross Domestic Product (GDP) to implement its programmes and projects.
The Finance Minister, Ken Ofori-Atta, disclosed this in Accra yesterday when he presented the 2024 budget and economic policy of government to Parliament and sought approval to spend the amount next year.
The document, which was in two two-parts, focuses on an economic programme for next year and the budget.
Dubbed Nkunim budget, it was on the theme “Pursuing Growth and Development within a stable Macroeconomic Environment.”
The presentation is in line with Article 179 (1) of the Constitution which mandates the President to “Cause to be prepared and laid before Parliament, at least one month before the end of the financial year estimates of the revenues and expenditure for the government of Ghana for the following financial year.”
It will be the final budget of the New Patriotic Party-led government and first since Ghana reached an agreement with the International Monetary Fund (IMF)
The Finance Minister who spoke for two hours, said the expenditure of GH¢226.7 billion which would be partly used for payment of salaries, clearance of arrears and implement government programmes and projects, was a reduction in the previous expenditure.
“This projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022. 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 point and primary expenditure by 4.0 percentage point of GDP. The potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability,” Mr Ofori-Atta stated.
He said the revenue for next year would be raised largely through existing tax handles, as the government did not introduce new tax measures in the 2024 budget but rather gave tax reliefs to bring financial relief to the private sector.
Mr Ofori-Atta said, based on the estimates for total revenue and grants and expenditure clearance (including arrears clearance), the overall budget deficit to be financed was a fiscal deficit of GH¢61.9 billion, equivalent to 5.9 per cent of GDP, with a corresponding primary balance was a deficit of GH¢5.9 billion, equivalent of to 0.6 per cent of GDP.
The Finance Minister stressed that the economy was getting back on track with improved macroeconomic indicators.
“We are in a better place than we were before. The nation has been positively impacted and positioned to harness its prospects. We must move forward courageously. For as 2 Timothy 1:7 counsels, “God has not given us the spirit of fear; but of courage, and of love, and of a sound mind,” he stated.
Mr Ofori-Atta added “It is in this same vein of courage and power, that we have forged a path of resilience since 2017. It is important to recall that despite the ‘poly-crises’ since March 2020, we have, together, taken a GDP of GH¢219.5 billion in 2016 and almost quadrupled it. We are crossing the GH¢1 trillion GDP mark this year.”
The Finance Minister said “A key lesson from this leap since 2017 is for us to eschew unfounded pessimism. We have shown that it is possible. We should be collectively proud of ourselves and the can-do-spirit of our people. We have proven that a lot more is possible, if we stay the course and believe in a future of immense possibilities.”
“To realise our common aspiration, Mr Speaker, we must continue to speak in our language. This is Ghana: A nation united in diversity. A resilient nation on the path to manifest destiny. Every opportunity to safeguard our progress must be protected by adherence to the exhortation of Genesis 11:6,” Mr Ofori-Atta stated.
He said the objective of the government for the short and medium term was to maintain stability and to keep growing.
“We are determined to remain on this course of increased growth, currency stability, and disinflation over the medium-term. Our future growth prospects are certainly brighter. And I am confident this ‘Nkunim Budget’ will ensure that we boldly walk on a sustainable path towards creating decent jobs and wealth for our people,” Mr Ofori-Atta stated.
BY KINGSLEY ASARE
