Total interest payments for the first five months of 2022 was estimated at ¢17.84 billion, the Bank of Ghana has indicated in its July 2022 Monetary Policy Report.

This is higher than the envisioned target of ¢16.54 billion.

Domestic interest payments as of May 2022 accounted for 76.7% of the total interest payments.

For the period under review, total interest payments constituted 60.9% of domestic revenue, up from 54.5% recorded in the corresponding period of 2021.

In the first quarter of 2022, total interest payments amounted to ¢10.608 billion, higher than the envisioned target of ¢10.037 billion.

However, total interest payments constituted 63.8% of domestic revenue, down from 64.6% recorded in the corresponding period of 2021.

Meanwhile, total expenditures & arrears clearance, for the first five months of 2022, summed up to GH¢48.87 billion, representing 9.7% of Gross Domestic Product.

This is below the target of GH¢51.81 billion (10.3% of GDP). This outturn represented a year-on-year growth of 26.1%.

The outturn was also 94.3% of the target.

Compensation of Employees

Compensation of Employees including wages and salaries, pensions & gratuities, and other wage related expenditure was ¢13.51 billion, lower than the target of ¢14.93 billion.

This outturn represented 90.5% of the target.

In terms of fiscal flexibility, compensation of employees constituted 46.1% of domestic revenue mobilised at the end of the first five months of 2022, lower than the 48.7% recorded in the corresponding period of 2021.

Use of Goods and Services

The Use of Goods and Services for the period under review totalled ¢1.23 billion, lower than the expected target of GH¢2.91 billion.

The outturn was 57.6% below the target, but recorded a year-on-year growth of 105.7%.