Ken Ofori-Atta
PROVISIONAL FISCAL data for January to June this year from the Ministry of Finance shows that total revenue and grants amounted to GH¢28.3 billion, equivalent to 6.5 percent of GDP, against a programmed target of GH¢32.4 billion or 7.5 percent of GDP.
For the same period, total expenditure, including the clearance of arrears, amounted to GH¢50.6 billion, equivalent to 11.7 percent of GDP, against a programmed target of GH¢55.1 billion or 12.7 percent of GDP.
Ken Ofori-Atta, Finance Minister, who was speaking to Parliament yesterday, emphasised that the fiscal deficit for the period was financed from both foreign and domestic sources adding that the net foreign financing of GH¢15.2billion constituted 68.3 percent of the total financing and included inflows from Eurobond proceeds.
“On the other hand, total domestic financing amounted to GH¢7.1billion, representing 31.7 percent of total financing,” he said.
Public Debt
Commenting on the total public debt stock, as a percentage of GDP, he said that increased from 76.1 percent at the end of December 2020 to 77.1 percent of GDP at the end of June 2021.
“This stock includes the financial and energy sector bailouts. Excluding the Financial Sector Bailout, the nominal debt stock as percentage of GDP is 72.9 percent. The increase in the debt stock was mainly because of the Eurobond issuance in April 2021, COVID19 pandemic effect, contingent liabilities, and front-loading of financing to meet cash flow requirements for the first half of the year.”
Economic Impact Of Pandemic
He said improving regional and global supply chains and rising demands led to total exports reaching US$2.5 billion in the first two months of 2021 indicating that by June, that had significantly increased to US$7.6 billion.
“In addition, the COVID-19-related regulatory reliefs and policy measures introduced by the Bank of Ghana continued to promote bank lending activities. From the beginning of the year to June 2021, new advances reached GH¢16.0 billion, marginally above the advances of GH¢15.8 billion during the same period in 2020. It is expected that as economic activities rebound and lending rates drop further, private sector credit will pick up.”
Tourist Arrivals
The minister added that tourist arrivals into the country as at the end of 2020 was about 370,000, as against a revised target of 400,000 for 2020. With the re-opening of the Kotoka International Airport in September 2020, arrivals at the end of the second quarter of 2021 were 231,000, representing 65 percent of the full year arrivals in 2020.
Covid 19 Fund Disbursement
“As at 30th June, 2021 the COVID-19 National Trust Fund had received a total amount of GHȼ57.15 million in cash donations. These donations were made between the period April 2020 and March 2021. As at 30th June 2021, the Fund had disbursed an amount of GH¢52,501,540.44, for various programmes as well as procurement of items.”
BY Samuel Boadi