Director for Institute of Statistical, Social and Economic Research (ISSER), Prof Peter Quartey

The Institute of Statistical, Social and Economic Research (ISSER) has expressed concern about the significant fiscal constraints, mounting fiscal pressures, and less robust revenue performance in the first-half of 2022.

According to the research institution, the shortfalls in government revenue (12.9%), comparatively to faster execution of expenditure (on target) should also be of a concern.

In its State of the Ghanaian Economy in 2021 and Quarter 3 2022 Economic Performance Review, it said revenue handles with the exception of oil and gas, GETFund levy and other direct taxes fell short of targets especially non-oil-non-tax rev (34.4%).

Grants also fell below target by 22.1% and recorded a negative year-on-year growth of 65.2%.

For expenditure, with the exception of interest payments (highest expenditure item), capital expenditure and subsidies – all key expenditure items were contained within their respective targets.

Again, domestic capital expenditure and use of goods and services recorded a deviation of 77.4% and 40.8% respectively, below target, reflecting the cuts in discretionary spending approved by Cabinet.

As of June 2022, overall fiscal deficit was ¢28.153 billion on cash basis (5.6% of GDP), against a deficit target of ¢19.73 billion (3.9% of GDP).

ISSER said there is a possibility of missed fiscal consolidation in 2022.
As of June 2022, overall fiscal deficit was ¢28.153 billion on cash basis (5.6% of GDP), against a deficit target of ¢19.73 billion (3.9% of GDP).

Public debt as of end June 2022 was 78.3% of GDP, an increase of 1.7% of GDP.

Fiscal outlook

The report said the revision of fiscal deficit from a target of 7.4% to a lower target of 6.6% of GDP will be underpinned by the implementation of 30% discretionary expenditure cuts and other expenditure measures.

Total expenditure (including arrears and discrepancy) has been revised downward to ¢135.7 billion (22.9% of revised GDP), from the 2022 budget target of 27.4% of GDP – 4.5% GDP reduction.


Also, Total Revenue and Grants has been revised down to ¢96.84 billion (16.4% of revised GDP) in from the 2022 budget target of ¢100.517 billion (20.0% of GDP) -3.7% GDP reduction.


Additionally, interest payments has also been revised upwards from ¢37.447 billion (7.5% of GDP) to ¢41.362 billion, mainly due to exchange rate depreciation and higher interest costs.


Similarly, compensation has also been revised upwards to ¢37.949 billion (6.4% of revised GDP), from ¢35.841 billion (7.1% of GDP) to reflect 15% COLA as agreed.


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