Government targets GHC176.4bn revenue in 2024

Finance Minister Ken Ofori-Atta has unveiled the government’s fiscal blueprint for 2024, projecting total revenue at GH¢176.4 billion,

Highlighting key aspects of the 2024 Budget Statement and Economic Policy, Ofori-Atta underscored that the government foresees total expenditures reaching GH¢226.7 billion, constituting 21.6 percent of the Gross Domestic Product (GDP).

In explaining the comprehensive fiscal strategy, the Finance Minister emphasized a significant reduction in total expenditures, amounting to a 6.1 percentage point decrease of GDP compared to the 2022 outturn. This reduction, Ofori-Atta clarified, stems from a combination of fiscal consolidation measures, involving a 4.9 percentage point adjustment in revenue and a 4.0 percentage point adjustment in primary expenditure.

Addressing the potential impact of the ongoing external debt operation, Ofori-Atta highlighted the anticipated interest rate savings, emphasizing their positive contribution to public finance sustainability.

Ofori-Atta stated, “Total Revenue and Grants are projected at GH¢176.4 billion (16.8 percent of GDP) and is underpinned by permanent revenue measures, largely tax revenue measures amounting to 0.9 percent of GDP."

He continued, "Total Expenditure (commitment) is projected at GH¢226.7 billion (21.6 percent of GDP). This projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022."

Explaining the substantial decrease, he added, "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 points of GDP."

Concluding his presentation, Ofori-Atta stated, "The potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability. Based on the estimates for Total Revenue & Grants and Total Expenditure (including arrears clearance), the overall Budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9 percent of GDP. The corresponding Primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6 percent of GDP."