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Finance Minister Ken Ofori-Atta has announced the government plans to allocate GH¢226.7 billion, equivalent to 21.6% of the gross domestic product (GDP), for the fiscal year.
This represents a notable reduction of 6.1 percentage points in total expenditures relative to 2022.
The government aims to implement fiscal consolidation measures, with a 4.9 percentage point decrease in GDP, achieved through a 1.0 percentage point reduction in revenue and a 4.0 percentage point cut in primary expenditure.
For the preceding year, 2023, the government anticipates a spending increase to GH¢205 billion, marking a substantial 34% rise compared to the GH¢153 billion allocated in the 2022 expenditure budget.
Mr. Ofori-Atta stressed that the reduction in spending for 2024 is supported by potential interest rate savings from external debt operations, contributing to enhanced public finance sustainability.
In a significant economic milestone, the Minister also announced that Ghana’s economy is projected to surpass GH¢1 trillion in GDP for the first time in 2024.
This achievement is emphasized as a historic moment, considering the GDP’s growth from the inherited GH¢219.5 billion in 2016 to the projected GH¢1 trillion in the final year of President Akufo-Addo’s term in office.
