The Minister of Finance, Mr. Ken Ofori-Atta, has stated that the economy is beginning to show signs of recovery from the impact of the Covid-19 pandemic and to sustain this recovery phase, the government of Ghana will continue to support the productive sectors of the economy.
This Mr. Ofori-Atta said will help the vulnerable through the implementation of the Ghana CARES (Obaatanpa) Programme and the flagship intervention programmes.
He said real Growth Domestic Product (GDP) is projected to expand by 5.1% year on year in 2021 driven by the services, agriculture and industry sectors with growth rates of 7.3, 5.3 and 2.6 percent respectively.
The minister added that headline inflation is projected to remain within the medium-term target band of 8.2%, supported by easing food price pressures, base-drift effects, relative stability of the exchange rate, and well-anchored inflation expectations.
He revealed that the fiscal operations are expected to result in a fiscal deficit (on cash basis) to GH¢41,273 million (9.4% of GDP) slightly lower than the original deficit target of GH¢41,298 million (9.5% of GDP).
Revenue forecasts
Mr Ofori-Atta said the total revenue and grants is projected at GH¢89.1 billion (17.9% of GDP) for 2022 and represents a nominal growth of 23% over the projected output for 2021 and is expected to increase to GH¢100.6 billion (17.9% of GDP) in 2023, GH¢112.5 billion (17.7% of GDP) in 2024 reaching GH¢126.3 billion (17.7% of GDP) by 2025. 29.
He reveals further that of the 2022 projected revenue, gross non-oil Tax Revenue is estimated at GH¢70.5 billion (14.2% of GDP) and represents a per annum growth of 23.5%.
On net basis, (excluding tax refunds), non-oil Tax Revenue is estimated at GH¢66.96 billion (13.5% of GDP) while non-oil Non-Tax revenues from MDAs that generate Internally generated Funds (IGFs) will amount to GH¢8.41 billion in 2022 and increase by about 14.8% thereafter.
He stated that grants disbursements will be expected to decline from GH¢599.89 million in 2022 to GH¢157.71 million in 2025.
