Parliament yesterday November, 15, 2023 approved the 2024 Budget Statement and Economic Policy of government presented to the House by the Finance Minister, Ken Ofori-Atta.
The approval, which came as a result of a headcount of members of parliament in favour of the majority, gives authorization to the government to spend an amount of Gh¢226.7 billion in the 2024 fiscal year.
Last week, following conclusion on debates on the budget, the House failed to approve the policy document because the majority side of the House staged a walkout in protest of the minority’s demand for a headcount which was admitted by the Speaker of Parliament.
Resource Allocation for 2024 Budget and Policy Statement
The GH¢226.7 billion expenditure for 2024 represents 21.6 percent of GDP, with primary expenditure projected at GH¢170.7 billion representing 16.2 percent of (GDP).
Total revenue, including grants, is projected at GH¢176.4billion – 16.8 percent of GDP, underpinned by permanent revenue measures – primarily tax revenue – amounting to 0.9 percent of GDP.
The finance minister, in his presentation of the budget, stated that compensation of employees, comprising wages and salaries, pensions, gratuities, and social security has been programmed at GH¢63.7 billion – 6.1percent of GDP.
“Use of goods and services is also projected at GH¢11.1 billion –1.1percent of GDP. Grants to other government units which comprise transfers to statutory funds as well as all other earmarked funds is estimated at GH¢39.6 billion representing 3.8 percent of GDP.
“Capital Expenditure (CAPEX) is estimated at GH¢28.7 billion. Of this amount, domestically financed CAPEX is GH¢18.2 billion, while an amount of GH¢10.5 billion has been programmed for foreign financed CAPEX and this will be funded by a combination of project grants and project loans,” he said.
Other Expenditures, mainly comprising the Energy Sector Levies (ESL) transfers and energy sector payment shortfalls to independent power producers is estimated at GH¢27.7 billion – 2.6 percent of GDP.
Mr. Ofori-Atta also indicated that the economy under President Akufo-Addo’s final year in office is projected to be valued over GHȼ1 trillion in 2024 from the GHȼ219.5 billion in 2016.
“The 2024 budget is even more significant because we will cross the GHȼ1 trillion GDP mark for the first time in our economic history. With such a milestone ahead of us, government is protecting, at all cost, the foundation for sustained economic expansion. A foundation that has been achieved through the sweat and patience of the Ghanaian people. We pledge to protect this for all our people and especially for private sector growth,” he stated.
