This reflects the higher cost of borrowing and the adverse impact of the currency depreciation on external interest, as domestic interest payments also constituted 78 percent of total Interest Payments for the period.
Minister of Finance, Ken Ofori-Atta who announced this during the presentation of the 2023 budget statement on the floor of Parliament said a Total Expenditure (including arrears clearance and discrepancy) for the period amounted to GH¢109,421 million (18.5 percent of GDP), above the target of GH¢103,992 million (17.6 percent of GDP) by 5.2 percent.
According to him, the compensation of Employees amounted to GH¢27,146 million (4.6 percent of GDP), 2.9 percent below the budgetary provision of GH¢27,947 million (4.7 percent of GDP), and also the Wage bill constituted 91.3 percent of the total Compensation and amounted to GH¢ 24,734 million.
He explained that Provisional debt data as of the end of September 2022 shows a significant increase in Ghana’s public debt largely due to exogenous factors, adding that as at the end of September 2022 provisional figures indicate that total gross public debt stood at GH¢467,371.31 million US $48,871.34 million), representing approximately 75.9 percent of GDP.
He said the domestic debt component is GH¢195,657.60 million, which is 31.79 percent of GDP, whilst external debt is GH¢271,713.71 million, representing 44.15 percent of GDP.
Additionally, the increase in domestic debt is largely on account of rising interest costs. Domestic debt as a share of total public debt reduced from 51.6 percent in 2021 to 41.9 percent as of the end September 2022.
The external debt as a percentage of the total debt stock is 58.1 percent as of the end September 2022. The sharp growth in the external debt stock is largely driven by the depreciation of the local currency. The depreciation of the Ghana cedi added GH¢93,855.15 million to the external debt stock.
Overall, debt accumulation increased from 20.7 percent in 2021 to 3 percent attracting the of end September 2022, reflecting the impact of the depreciation of the Ghana cedi on the external debt side.
Domestic Revenue for the period amounted to GH¢64,601million (10.9 percent of GDP), falling below the target of GH¢66,503 million (11.2 percent of GDP) by 2.9 percent. The outturn, however, represents a year-on-year growth of 34.0 percent and constituted 98.8 percent of Total Revenue and Grants.
Total Expenditure (including arrears clearance and discrepancy) for the period amounted to GH¢109,421 million (18.5 percent of GDP), above the target of GH¢103,992 million (17.6 percent of GDP) by 5.2 percent. Compensation of Employees amounted to GH¢27,146 million (4.6 percent of GDP), 2.9 percent below the budgetary provision of GH¢27,947 million (4.7 percent of GDP).
The Wage bill constituted 91.3 percent of the total Compensation and amounted to GH¢24,734 million.
Source: dailyguidenetwork.com
