Government spending and arrears clearance in the first nine months of 2022 was broadly within target.

According to the Bank of Ghana, some key expenditure lines, however, recorded overruns.

Total expenditures and arrears clearance, for the first nine months of 2022, summed mainly up to ¢99.570 billion (16.8% of Gross Domestic Product), below the target of ¢102.566 billion (17.3% of GDP).

This outturn represented year-on-year growth of 30.1%. The outturn was also 97.1% of the target.

Of the expenditures, Compensation of Employees (including wages and salaries, pensions & gratuities, and other wage related expenditure) was ¢27.14 billion, lower than the target of ¢27.94 billion.

This outturn represented 97.1% of the target.

In terms of fiscal flexibility, compensation of employees constituted 42.0% of domestic revenue mobilized, better than the 50.4% recorded in the corresponding period of 2021.

Use of Goods and Services totalled ¢4.233 billion, lower than the expected target of ¢5.117 billion. The outturn was 17.3% below the target, but recorded a year-on-year growth of 25.9 percent.

Total interest payments of ¢32.10 billion was higher than the projected target of ¢30.890 billion by 3.9%, and accounted for 32.2% of total expenditure.

It also constituted 49.7% of domestic revenue, compared with 54.7% recorded in the corresponding period of 2021. Domestic interest payments accounted for 78.0% of the total interest payments during the period under review.

Grants to other government units consisting of National Health Fund, Education Trust Fund (GET Fund), Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to GNPC and other earmarked funds all summed up to ¢17.562 billion, above the envisioned target of ¢16.820 billion by 4.4%.

It also recorded a year-on-year growth of 57.7%.

Other expenditures made up of ESLA Transfers, Covid-19 related expenditures, and other critical spending, for the first nine months of 2022 was ¢7.093 billion.

ESLA transfers of ¢3.816 billion was above the projected target of ¢3.319 billion by 15.0%.