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Economic news for Sunday March 14, 2021
Source: FM class
03/14/2021
Majority leader Osei Kyei-Mensah-Bonsu served as interim finance minister
Total Ghanaian government spending (including arrears clearance) is expected to rise to GH ¢ 113,750 million, or 26.2 percent of GDP for 2021, said Acting Finance Minister Osei Kyei-Mensah -Bonsu.
The majority leader told Parliament on Friday March 12, 2021, during the presentation of this year’s budget, that the amount “represents a growth of 13.7% compared to the result of GH ¢ 100,052 million recorded in 2020. “.
“Mr. President, salaries and wages are expected to rise to GH ¢ 25,799 million and represent 22.7% of total expenditure (including arrears clearance) for 2021,” said the Minister of Parliamentary Affairs.
As a percentage of GDP, the wage bill is expected to be 5.9% in 2021, compared to 6.5% in 2020.
The member for Suame said that the use of goods and services is also projected at GH ¢ 5,967 million or 1.4% of GDP.
It represents 5.2% of total projected expenditure (including arrears clearance).
In addition, he noted, interest payments are projected at GH ¢ 35,864 million, or 8.3 percent of GDP in 2021.
“Of this amount, domestic interest payments will be around 79.1% and will amount to GH ¢ 28,368 million. Transfers to statutory funds as well as to all other earmarked funds are estimated at GH ¢ 18,081 million (4.2% of GDP), a growth of 52.2% compared to the result recorded for 2020 ”, a- he detailed.
Capital expenditure is projected at GH ¢ 11,423 million (2.6% of GDP) in 2021, a decrease of 5.5% compared to 2020,
“Of this amount, the capital expenditure financed by the country is estimated at 3.310 million GH ¢ (0.8% of GDP),” the lawmaker said.
In addition, GH ¢ 8,112 million has been estimated for externally financed capital expenditure and this amount will be financed through a combination of project grants and loans.
Regarding the budget balances and financing operations for 2021, Mr. Kyei-Mensah-Bonsu said that based on the estimates of total revenue and grants and total expenditure, the 2021 budget operations would result in an overall budget deficit of GH 41,298 million cent of GDP.
“Mr President, the financing of the budget deficit will come from both domestic and foreign sources,” he told parliament, adding: “The net domestic financing will amount to 25.424 million GH ¢ (5.9 % of GDP) while net external financing will amount to GH 15,870 million ¢ (3.7% of GDP) and will include a planned program in international capital markets to raise up to $ 5 billion, of which $ 1.5 billion will be used to support the implementation of the 2021 budget and the remainder for liability management.
“Mr. President, a corresponding primary deficit equivalent to 1.3 percent of GDP is also projected for the year.”
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