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Macroeconomic targets for 2022 budget – Finance Minister

macroeconomic targets for 2022:

i. Overall Real GDP growth of 5.8 percent;

ii. Non-Oil Real GDP growth of 5.9 percent;

iii. End-December inflation rate of 8 percent

iv. Fiscal deficit of 7.4 percent of GDP

v. Primary surplus of 0.1 percent of GDP;

vi. Gross International Reserves to cover not less than 4 months of imports.

Meanwhile, Total Expenditure (including clearance of Arrears) is projected at GH¢137.5 billion, equivalent to 27.4 percent of GDP.

According to Finance Minister, 2022 fiscal operations will result in an overall fiscal deficit of GH¢37 billion, equivalent to 7.4 percent of GDP.

Presenting the 2022 budget today [17,Nov. 2021], Finance Minister Ken Ofori_Atta said, only 2,364,348 persons out of a population of 30.8 million are bearing the burden of the entire population astax payers as at August, 2021.

He added that, Greater Accra contributes almost 90 percent of our domestic tax; -Ashanti, Western and Eastern regions together contribute barely to 3 percent of domestic taxes.

FISCAL PERFORMANCE:

Preliminary data for the first nine months of the year indicate that, Government’s fiscal operations resulted in a cash deficit of GH¢33.9 billion, equivalent to 7.7 percent of GDP, compared to the revised target of GH¢32.6 billion, equivalent to 7.4 percent of GDP.

FISCAL PERFORMANCE Provisional nominal debt stock, including financial sector bailout costs and energy sector IPPs payments, stood at GH¢341.76 billion, equivalent to 77.5 percent of GDP as at end-September 2021, up slightly from GH¢291.63 billion, equivalent to 76.1 percent in December 2020.

Inflation reduced from 15.4 percent at the end of 2016 to 7.9 percent at the end of 2019 and stood at 11.0 percent at end October 2021. Interest rate (91-day treasury bills) declined from 16.4 percent at the end of 2016 to 14.69 percent at the end of 2019 and further to 12.46 percent at the end of October 2021.

Source: Adoanewsonline.com

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