Accra, Ghana, November 20, 2018//-Ghana has announced that it would generate an amount of GH¢58.9 billion in 2019 from revenue and grants, representing 17.1 percent of the rebased GDP, up from a projected outturn of GH¢46.8 billion, 15.7 percent of rebased GDP in 2018.
Out of this figure, domestic revenue is estimated at GH¢57.8 billion, representing an annual growth of 25.5 percent over the projected outturn for 2018.
Of this amount, non-oil Tax Revenue will constitute about 74.2 percent of domestic revenue and amount to GH¢42.9 billion. This estimate reflects the impact of expected improvements in tax compliance and reforms in revenue administration.
While non-Tax Revenue, excluding oil, will amount to GH¢6.5 billion (1.9 percent of GDP) in 2019, equivalent to 11.3 percent of Total Domestic Revenue.
Of this amount, GH¢4.4 billion is expected to be retained by institutions as internally generated funds (IGF). In addition, as a result of the IGF capping, an amount of GH¢282.2 million is expected to be paid into the Consolidated Fund, according to the Minister of Finance, Ken Ofori Atta.
Receipts from upstream petroleum activities are projected at GH¢5.4 billion in 2019, equivalent to 1.6 percent of GDP, and representing 30.3 percent growth over the projected outturn for 2018. 96.
Grants disbursements from Development Partners are estimated at GH¢1.1 billion, up from the projected outturn of GH¢773.2 million in 2018.
Resource Allocation for 2019
Total Expenditure (including clearance of Arrears) is estimated at GH¢73.4 billion, equivalent to 21.3 percent of GDP, representing a growth of 27.0 percent above the projected outturn for 2018.
Expenditure on Wages and Salaries is forecasted at GH¢19.4 billion representing about 26.5 percent of Total Expenditure.
The wage bill is anticipated to reduce to 5.6 percent of GDP from the 5.9 percent projected outturn for 2018.
Expenditure on Goods and Services is projected at GH¢6.3 billion, representing 1.8 percent of GDP. The annual growth of 38.8 percent reflects a full provision made to cater for the Government’s priority programmes, including the flagship Free SHS policy.
A total amount of GH¢18.6 billion has been estimated for Interest Payments of public debt. Of this amount, domestic interest payments will constitute about 77.8 percent and amount to GH¢14.5 billion.
Government in 2019 will continue to implement the Earmarked Funds Capping and Realignment Act, 2017 (Act 947) to reduce budget rigidities and create fiscal space to fund growth enhancing expenditures.
In this regard, transfers to Statutory Funds as well as all other earmarked funds, are estimated at GH¢13.8 billion, equivalent to 4.0 percent of GDP, compared to 3.5 percent in 2018.
Capital Expenditure is projected at GH¢8.5 billion, equivalent to 2.5 percent of GDP and a growth of 55.7 percent over the 2018 projected outturn.
Of this amount, domestically financed Capital Expenditure is estimated at GH¢3.2 billion or 0.9 percent of GDP.
An amount of GH¢5.3 billion has been budgeted for Foreign Financed Capital Expenditure and this will be funded by a combination of Project Grants and Loans.
African Eye Report
