Finance Minister Ken Ofori-Atta has stated that Government in 2019, will continue to implement the Earmarked Funds Capping and Realignment Act, 2017 (Act 947) to reduce budget rigidities and create fiscal space to fund growth enhancing expenditures.
He said in this regard, transfers to Statutory Funds as well as all other earmarked funds, are estimated at GH¢13.8 billion, equivalent to 4.0 percent of GDP, compared to 3.5 percent in 2018.
He added that a total Expenditure, including clearance of Arrears, is estimated at GH¢73.4 billion. This he said is equivalent to 21.3 percent of GDP, representing a growth of 27.0 percent above the projected outturn for 2018.
He said that expenditure on Wages and Salaries is forecasted at GH¢19.4 billion representing about 26.5 percent of total expenditure. The wage bill, according to him, is anticipated to reduce to 5.6 percent of GDP from the 5.9 percent projected outturn for 2018.
The Finance Minister revealed that expenditure on Goods and Services is projected at GH¢6.3 billion, representing 1.8 percent of GDP.
He said: “A total amount of GH¢18.6 billion has been estimated for Interest Payments of public debt. Of this amount, domestic interest payments will constitute about 77.8 percent and amount to GH¢14.5 billion. Capital Expenditure is projected at GH¢8.5 billion, equivalent to 2.5 percent of GDP and a growth of 55.7 percent over the 2018 projected outturn. Of this amount, domestically financed Capital Expenditure is estimated at GH¢3.2 billion or 0.9 percent of GDP. An amount of GH¢5.3 billion has been budgeted for Foreign Financed Capital Expenditure and this will be funded by a combination of Project Grants and Loans.”