Emmanuel Kofi Ntim, GRA Boss
Total revenue and grants for 2019 are estimated at GH¢58.9 billion, representing 17.1 percent of the rebased GDP, up from a projected outturn of GH¢46.8 billion, representing 15.7 percent of rebased GDP in 2018.
Domestic revenue is estimated at GH¢57.8 billion, representing an annual growth of 25.5 percent over the projected outturn for 2018.
Of this amount, non-oil tax revenue will constitute about 74.2 percent of domestic revenue and amount to GH¢42.9 billion.
This estimate reflects the impact of expected improvements in tax compliance and reforms in revenue administration.
Ken Ofori-Atta, Finance Minister, who disclosed this yesterday in Parliament, said non-tax revenue, excluding oil, will amount to GH¢6.5 billion (1.9 percent of GDP) in 2019, equivalent to 11.3 percent of total domestic revenue.
“Of this amount, GH¢4.4 billion is expected to be retained by institutions as internally generated funds (IGF). In addition, as a result of the IGF capping, an amount of GH¢282.2 million is expected to be paid into the Consolidated Fund.”
“Receipts from upstream petroleum activities are projected at GH¢5.4 billion in 2019, equivalent to 1.6 percent of GDP, representing 30.3 percent growth over the projected outturn for 2018.
“Grants disbursements from development partners are estimated at GH¢1.1 billion, up from the projected outturn of GH¢773.2 million in 2018.
Allocation for 2019
He also said total expenditure (including clearance of Arrears) is estimated at GH¢73.4 billion, equivalent to 21.3 percent of GDP, representing a growth of 27.0 percent above the projected outturn for 2018.
Expenditure on wages and salaries is projected at GH¢19.4 billion, representing about 26.5 percent of total expenditure. The wage bill is anticipated to reduce to 5.6 percent of GDP from the 5.9 percent projected outturn for 2018.
Expenditure on goods and services is projected at GH¢6.3 billion, representing 1.8 percent of GDP.
The annual growth of 38.8 percent reflects a full provision made to cater for the government’s priority programmes, including the flagship Free SHS policy.
Interest on public debt
A total amount of GH¢18.6 billion has been estimated for interest payments of public debt. Of this amount, domestic interest payments will constitute about 77.8 percent and amount to GH¢14.5 billion.
Earmarked funds
He said government will in 2019 continue to implement the Earmarked Funds Capping and Realignment Act, 2017 (Act 947) to reduce budget rigidities and create fiscal space to fund growth enhancing expenditures.
“In this regard, transfers to statutory funds as well as all other earmarked funds, are estimated at GH¢13.8 billion, equivalent to 4.0 percent of GDP, compared to 3.5 percent in 2018.
Capex
Capital Expenditure is projected at GH¢8.5 billion, equivalent to 2.5 percent of GDP and a growth of 55.7 percent over the 2018 projected outturn.
Of this amount, domestically financed capital expenditure is estimated at GH¢3.2 billion or 0.9 percent of GDP.
An amount of GH¢5.3 billion has been budgeted for foreign financed capital expenditure and this will be funded by a combination of project grants and loans.
Deficit
Based on the estimates for total revenue & grants and total expenditure, the 2019 fiscal operations will result in an overall budget deficit of GH¢14.5 billion, equivalent to 4.2 percent of GDP. 104.
Financing of the fiscal deficit will be from both domestic and foreign sources. Net Foreign Financing will amount to GH¢9.7 billion, including a planned sovereign bond issuance of GH¢9.6 billion.
Total domestic financing is estimated at GH¢4.8 billion and this will result in a primary surplus of 1.2 percent of GDP.
By Samuel Boadi