Ghana’s total mid-year expenditure (including arrears clearance and discrepancy) was GH¢101.21 billion (9.6% of GDP), the Bank of Ghana’s July 2024 Monetary Policy Report has noted.

It said this was below the target of GH¢104.77 billion (10% of GDP) by 3.4 per cent despite its 66.5 per cent year-on-year increase.

Compensation of employees (including wages and salaries, pensions & gratuities, and other wage related expenditure) was GH¢29.30 billion, marginally lower than the target of GH¢29.96 billion.

This outturn fell short of its target by 2.2 per cent and recorded 48.4 per cent year-on-year growth, the central bank said.

It added that in terms of fiscal flexibility, compensation of employees constituted 39.5 per cent of domestic revenue mobilised during the period under review.

Use of Goods and Services totalled GH¢5.77 billion, higher than the expected target of GH¢4.56 billion, an overrun of 26.6 per cent.

This expense was lower than the GH¢6.25 billion observed in the corresponding period of 2023, reflecting a year-on-year contraction of 7.6 per cent.

Total interest payments of GH¢19.03 billion fell below the envisioned target of GH¢26.35 billion for the review period.

This outturn compares with GH¢13.39 billion recorded in the corresponding period of 2023.

The decreased interest payment was mainly on account of a partial freeze on debt service because of the debt restructuring program by Government to help resolve Ghana’s fiscal and debt vulnerabilities.

It said grants to other government units (made up of National Health Fund, Education Trust Fund, Road Fund, Energy Fund, District Assemblies Common Fund, Retention of IGFs, transfer to GNPC, Ghana Infrastructure Fund and other earmarked funds) all summed up to GH¢19.70 billion, higher than the target of GH¢17.55 billion, resulting in a positive deviation of 12.2 per cent.

It also recorded a year-on-year growth of 83.4 per cent.

Capital expenditure for the period under review was GH¢13.91 billion (1.3% of GDP), lower than the programmed target of GH¢19.13 billion (1.8% of GDP) by 27.2 per cent.

This outturn represented a year-on-year growth of 107.8 per cent, the report added.

Other expenditure for the second quarter of 2024 was GH¢12.98 billion, 95.1 per cent above the target of GH¢6.65billion.

Out of this, energy sector payment shortfalls totalled GH¢10.60 billion (1.0% of GDP), higher than the programmed target of GH¢2.84 billion (0.3% of GDP).

This contributed to the resulting positive deviation of 95.1 per cent.

This outturn of GH¢12.98 billion dwarfed the GH¢3.76 billion recorded in the corresponding period of 2023.