Government spent ¢6.758 billion on interest payments in the second quarter of 2021, the Bank of Ghana has indicated.
It was however 25.1% below the programmed target.
Domestic interest payments alone accounted for 76.7% of the total Interest payment and registered a year-on-year growth of 33.7%.
Also, the external interest payments accounted for the remaining 23.3% and recorded a year-on-year decline of 11.0%.
The high borrowing on the domestic market is in line with government strategy of borrowing more from the domestic market, which unfortunately could crowd out the private sector in accessing funds.
Meanwhile, government expenditure and net lending in the second quarter of 2021 totalled ¢24.87 billion, about 5.7% of Gross Domestic Product compared with a programmed target of ¢26.86 billion (6.2% of GDP).
This was, however, higher than the payments of ¢23.555 billion (6.1% of GDP) in the corresponding period of 2020 by 5.6%.
Instructively, compensation of employees, goods and services and interest payments were the main drivers of expenditure, as they constituted about 71% of total payments made in the period under review.
Grants to Other Government Units
Grants to other government units totalled ¢2.974 billion and recorded a negative deviation of 24.8%.
Out of that payments of ¢170 billion to the National Health Fund, ¢99.0 million went to the District Assembly Common Fund and ¢185.1 million to the Road Fund. They were below their respective programmed targets.
Internally Generated Funds retained by MDAs amounted to ¢762.3 million, also indicating a negative deviation of 27.8%.
Other Earmarked Funds totalled ¢766.5 million, while ESLA transfers amounted to ¢553.8 million with COVID-19 related expenditures totalling ¢527.4 million.
The other earmarked funds and ESLA transfers fell short of the budgetary targets by 21.8% and 24.8%, respectively. Similarly, Covid-19 related expenditures also fell short of the target of ¢1.752 billion by 69.9%.
Government acquisition of non-financial assets during the second quarter of 2021 was ¢3.067 billion, above its budgetary target of ¢2.221 billion by 38.1%.
Total domestic financed capital expenditure for the period was however ¢738.8 million, representing 24.1% of total capital expenditure, while foreign-financed capital expenditure was ¢2.328 billion and constituted 75.9% of the total outlay.
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Today’s frontpages: Tuesday, December 7, 2021
British High Commissioner to Ghana visits Root of Change Project beneficiaries in N/R
Asantehene joins Awuah-Darko family to celebrate Juabenhene
ECG shuts down Yilo Krobo office over threats against staff, property
Jackie Appiah celebrates birthday with residents of Kogni
Invest in research into Covid-19 treatment – Policymakers urged
Isaac Kofi Agyei: What will happen to price of fuel if government decides to listen to 16 driver unions?
Servaco PPS partners Captain One Golf Society for Charity Championship
Stunning Gray strike in injury time earns Everton comeback win against Arsenal
Ladystrikers’ head coach unhappy with officiating in Super Cup final
Two humiliating defeats for Hearts in Africa but where do they go from here?
Government commits to review taxes on fuel in Mid-year Budget after drivers’ strike – Abbas Imoro
Zongo Development Fund CEO honoured at 2021 Ghana Leadership Awards
GOIL expected to reduce fuel prices by ¢0.15 effective today – Kennedy Osei Nyarko