Adnan Adams Mohammed
For the first six months of 2022, government has spent GH¢37.5 billion on its two major expenditure items; thus, debt servicing (interest payment on loans) and public sector workers salaries.
According to the 2022 Mid-Year Budget Review, interest payments, which dominated government expenditure for the first half of 2022, stood at GH¢20.4 billion, representing 4.5% of Gross Domestic Product (GDP). This was higher than the targeted amount of GHC¢19.05 billion.
Also, payment of salaries and compensation of public sector employees amounted to GH¢17.120 billion (representing 3.4% of GDP). This was 4.5% below the budgetary provision of GH¢17.921 billion. The Wage Bill constituted 88.6% of the total compensation and amounted to GH¢15.168 billion.
Also, Capital Expenditure for the period amounted to GH¢7.108 billion, representing 1.4% of GDP, against the target of GH¢8.905 billion (1.8% of GDP).
Domestic Capital Expenditure recorded a deviation of 77.4% below, reflecting the cuts in discretionary spending approved by Cabinet.
An amount of GH¢10.145 billion (2.0%of GDP) was accrued for transfer to statutory and earmarked funds, compared to a target of GH¢11.762 billion (2.3% of GDP).
Similarly, expenditure on the Use of Goods and Services for the period was GH¢2.210 billion (0.4% of GDP) compared to the target of GH¢3.732 billion (0.7% of GDP).
The apparent saving of 40.8% reflects the consolidation measures and the additional expenditure rationalisation measures for discretionary spending implemented for the 2022 fiscal year.
Other Expenditure amounted to GH¢4.80 billion.
