Government is forecasting total revenue and grants of ¢89.1 billion in 2022, about 17.9% of Gross Domestic Product.

According to its Medium-Term Framework target, this will represent a nominal growth of 23% over the projected outturn for this year.

This is expected to increase to ¢100.6 billion (17.9% of GDP) in 2023, ¢112.5 billion (17.7% of GDP) in 2024 and ¢126.3 billion (17.7% of GDP) by 2025.

Of the 2022 projected revenue, gross non-oil Tax Revenue is estimated at ¢70.5 billion (14.2% of GDP) and represents a per annum growth of 23.5%.

On net basis that is excluding tax refunds, non-oil Tax Revenue is estimated at ¢66.96 billion (13.5% of GDP).

Non-oil tax revenues from Ministries, Departments and Agencies that generate Internally Generated Funds (IGFs) will also amount to ¢8.41 billion in 2022 and increase by about 14.8% thereafter.

Grants disbursements which will be project related grants is expected to dwindle from ¢599.89 million in 2022 to ¢157.71 million in 2025.

Expenditure forecast

Meanwhile, total expenditure (including payments for the clearance of arrears) is projected to hit ¢128.3 billion (25.8% of GDP) in 2022, ¢135.6 billion (24.1% of GDP) in 2023, and GH¢157.1 billion (22.1% of GDP) in 2025.

Combined resources available for Goods and Services, COVID-19-related expenditures and domestically financed Capital expenditure will however amount to ¢12.5 billion in 2022.

Also, payments to Independent Power Producers (IPPs) is projected at $1 billion per year.

Additionally, compensation of employees is projected to increase from ¢31.5 billion (7.2% of GDP) in 2021 to GH¢34.6 billion (7.0% of GDP) in 2022 and further to GH¢38.5 billion (6.8% of GDP), GH¢42.3 billion (6.7% of GDP), and GH¢46.9 million (6.6% of GDP) in 2023, 2024, and 2025, respectively.

Goods and Services is projected to hit ¢5.2 billion (1.1% of GDP) in 2022, and then increase to GH¢4.9 billion (0.9% of GDP), GH¢5.4 million (0.9% of GDP) and GH¢6.7 million (0.9% of GDP) in 2023, 2024 and 2025, respectively.

Interest payments

Interest payments is projected to reach ¢37.2 billion (7.5% of GDP) in 2022, GH¢38.0 million (6.8% of GDP) in 2023, ¢38.7 billion (6.1% of GDP) in 2024, and ¢41.3 billion (5.8% of GDP) in 2025.

Capital expenditure

Capital expenditure is also projected to hit ¢11.8 billion (2.4% of GDP) in 2022, increasing to ¢12.2 billion (2.2% of GDP) in 2023, ¢11.4 billion (1.8% of GDP) in 2024, and further to GH¢12.1 billion (1.7% of GDP) in 2025.

Domestically financed Capex is projected at ¢11.8 billion (2.4% of GDP) in 2022, rising to GH¢12.2 billion (2.2% of GDP), GH¢11.4 billion (1.8% of GDP), and GH¢12.1 million (1.7% of GDP) in 2023, 2024, and 2025, respectively.