Total expenditures including arrears clearance and discrepancy for the first half of 2024 was estimated at GH¢101.21 billion, the July 2024 Monetary Policy Report by the Bank of Ghana has revealed.

This represents 9.6% of Gross Domestic Product (GDP).

However, it was below the target of GH¢104.77 billion (10% of GDP) by 3.4 percent despite its 66.5% year-on-year increase.

Compensation

Compensation of Employees including wages and salaries, pensions & gratuities, and other wage related expenditure) was GH¢29.30 billion.

This was marginally lower than the target of GH¢29.96 billion. This outturn fell short of its target by 2.2% and recorded 48.4% year-on-year growth.

In terms of fiscal flexibility, compensation of employees constituted 39.5% of domestic revenue mobilised during the period under review.

Goods and services

Use of Goods and Services totalled GH¢5.77 billion, higher than the expected target of GH¢4.56 billion, an overrun of 26.6%.

This expense was lower than the GH¢6.25 billion observed in the corresponding period of 2023, reflecting a year-on-year contraction of 7.6%.

Interest payments

Total interest payments of GH¢19.03 billion fell below the envisioned target of GH¢26.35 billion for the review period.

This outturn compares with GH¢13.39 billion recorded in the corresponding period of 2023.

The decreased interest payment was mainly on account of a partial freeze on debt service because of the debt restructuring programme by the government to help resolve Ghana’s fiscal and debt vulnerabilities.

Grants

Grants to other government units made up of National Health Fund, Education Trust Fund, Road Fund, Energy Fund, District Assemblies Common Fund, Retention of IGFs, transfer to GNPC, Ghana Infrastructure Fund and other earmarked funds all summed up to GH¢19.70 billion, higher than the target of GH¢17.55 billion.

This resulted in a positive deviation of 12.2%. It also recorded a year-on-year growth of 83.4%.

Capital expenditure

Capital expenditure for the period under review was GH¢13.91 billion (1.3% of GDP), lower than the programmed target of GH¢19.13 billion (1.8% of GDP) by 27.2 percent.

This outturn represented a year-on-year growth of 107.8%.

Other expenditure

Other expenditure for the second quarter of 2024 was GH¢12.98 billion, 95.1% above the target of GH¢6.65billion.

Out of this, the energy sector payment shortfalls totalled GH¢10.60 billion (1.0% of GDP), higher than the programmed target of GH¢2.84 billion (0.3% of GDP).

This contributed to the resulting positive deviation of 95.1%. This outturn of GH¢12.98 billion dwarfed the GH¢3.76 billion recorded in the corresponding period of 2023.