Ghana’s total expenditure in 2022 is projected at ¢128.3 billion which will be 25.8% of GDP.

Data from the Ministry of Finance indicate that total expenditure (including payments for the clearance of arrears) is projected at ¢128.3 billion (25.8% of GDP) in 2022.  

This means government expenditure in 2022 is expected to increase by almost 13% relative to the ¢113.8 billion expenditure in 2021.

In terms of revenue mobilization, government intends to raise an amount of ¢89.1 billion (17.9% of GDP) for 2022 and represents a nominal growth of 23% over the projected outturn for 2021.

Further analysis shows that the overall budget deficit (including finsec and IPPs cost) is projected at ¢39.2 billion (7.9% of GDP) for 2022.

The Ministry also noted that for the second time in a row, interest payments are expected to be higher than compensation of employees. “Interest payments is projected at ¢37.2 billion (7.5% of GDP) in 2022”.

Additionally, “compensation of employees is projected to increase from ¢31.5 billion (7.2% of GDP) in 2021 to ¢34.6 billion (7.0% of GDP) in 2022”.

Interest payments and compensation of employees for decades have been the two main component of government’s annual expenditure accounting for a little over 58% expenditure in 2021.

For the first time in 2021, government spent more on interest payments (¢30.3 billion) relative to compensation (¢35.9 billion).