News Guide Africa

Tag: Dr Ernest Addison

  • Banks staff to undergo annual Ethics Certification to fight growing threats

    Bank of Ghana

     

    Beyond regulatory measures, a resilient financial system is built on a foundation of ethical conduct, Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said.

     

     

    Integrity and professionalism, he noted,  are indispensable pillars of trust, and they underpin the confidence that the public places in our banking sector.

     

    In this regard, he said, “it is gratifying to highlight the Chartered Institute of Bankers’ Ethics Certification Programme which was developed in collaboration with Bank of Ghana and launched last year,” Dr Addison said at the 28th annual banking and ethics conference in Accra recently.

     

    “As I stated last year in my speech, all staff working in the banking industry must complete this Ethics Certification Programme and must be recertified annually.

     

     

    “This is now an essential part of the fit and proper assessment of the Bank of Ghana. I want to take this opportunity to encourage all banks to actively enrol their staff in this programme. Equipping our practitioners with ethical training will empower them to make the right ethical decisions, even in complex situations, and to serve as trustworthy custodians of public funds. At the Bank of Ghana, we believe that ethical certification should not be optional but a standard across the industry. I envision a future where every banking professional, from senior management to entry-level staff, carries the certification as a badge of honour—a reflection of commitment to uphold the values that protect and enhance our financial system.,” he added.

     

    Dr Addison further indicated that weaknesses leading to the collapse of banks are not overnight.

     

     

    He cited unviable and unsustainable business models and strategies as the root causes of banks’ vulnerabilities and failures.

     

    While sudden external shocks such as Covid-19 or the global financial crisis could be greatly impactful and cause the immediate demise of some banks, he said, the root causes are generally more structural.

     

     

    If not identified in time and allowed to fester, these vulnerabilities will make a bank’s activities increasingly unsustainable, to the point where it becomes non-viable, Dr Addison said.

     

    Going forward, he stated, the Bank of Ghana is incorporating Business Model Analysis (BMA) as a key component of its supervisory frameworks to enable supervisors identify banks’ vulnerabilities at an early stage and helps to ensure their safety and soundness.

     

    “We have recently issued an exposure draft of our methodology for assessing the viability of banks business model to the industry, which we will soon finalise for adoption. Business model analysis has the potential to enhance bank supervision and make it more effective, proactive and forward-looking, and would be our next examination thematic review next year.

     

    Nine local banks collapsed during the financial clean-up exercise.  Through the exercise, the number of banks in Ghana was cut down from 34 to 23. Also, some 347 microfinance institutions, 15 savings and loans and eight finance houses had their licences revoked.

     

     

    The failed banks were UT, Capital, The Beige Bank, The Construction Bank, Sovereign Bank, Unibank; The Royal Bank; Heritage Bank and Premium Bank.

     

     

  • BoG remains committed to delivering on its mandate – Addison

     

    The bank Square

     

     

    Governor of the Bank of Ghana (BoG) Dr Ernest Addison has said that he is filled with optimism that the new headquarters of the BoG, The Bank Square will remain a significant investment in the collective future as a nation.

     

     

    He said this would also push the Bank towards new frontiers in central banking and demonstrate what we as a nation are capable of achieving.

     

    “We remain committed to delivering on our mandate, and this new facility should enable us to do so effectively,” Dr Addison said during the commissioning of the new facility in Accra last week.

     

    He further explained that The Bank Square, was designed with the future in mind and stands as one of the most important modern civic landmarks in the city of Accra and for that matter, our nation.

     

     

    This building, he said, will play a pivotal role in shaping Ghana’s identity as leading force in Africa’s financial ecosystem, symbolizing Ghana’s growing influence as an economic powerhouse on the world stage.

     

    By commissioning this product of the imagination of an internationally celebrated architect, Sir David Adjaye, a proud son of Ghana, “we are boldly affirming our commitment to investing in the nation’s future. His architectural firm, Adjaye Associates, has created this enduring masterpiece—one designed to withstand the test of time and serve as a beacon of Ghana’s revitalization for generations to come,” Dr Addison said.

     

    Architecturally, he added, The Bank Square is a bold statement of Bank of Ghana’s enduring presence and authority in the financial landscape. Clad in durable stone, the building symbolizes permanence and resilience, much like ancient monuments that have withstood the test of time.

     

     

    “This material not only conveys the Bank’s stature but also requires minimal maintenance and supports the building’s sustainability goals. This architectural form

    reflects the Bank’s role as a regulatory authority and affirms its importance within the nation’s economic framework.

     

     

    “Standing at 100 meters, it is not only the tallest building in Ghana, but also the most sustainable EDGE Advanced structure of its size in the country and in the sub-region. This landmark complex is entirely powered by its own harvested solar energy, setting a new standard for environmentally conscious civic and public buildings across Africa. Together,

    the four buildings will accommodate over 2,500 staff and alongside offices and public banking facilities, there is a currency museum, conference and press amenities, 1,500 seat auditorium and rooftop terraces. Despite all the innovative features of the building, by acquiring the services of local partners, the Management of Bank of Ghana has ensured that the value for money assessment of this project can boast of a lower cost per square meter than comparable projects in Accra.

     

    “In addition, the construction of THE BANK SQUARE has provided an invaluable opportunity for hundreds of local workers to upskill their trades and crafts. It has equipped them with expertise to create buildings that set new standards in sustainability and craftsmanship, positioning them at the forefront of modern construction in Africa.

     

    16. Your Excellency, this is a civic building in the heart of Accra, that is designed to honour, shape and celebrate the future of Ghana. This state-of-the-art facility will foster creativity, collaboration, and efficiency, and undoubtedly it will enhance productivity in the Bank and further drive our success. We envision this building as a hub for innovation, where

    more groundbreaking ideas will be born and nurtured. It will be a place where our new generation of officials will thrive and achieve new heights in modern central banking.”

     

     

  • “I can drive the dollar-cedi rate to GHc10 tomorrow…” BoG Governor claims

    Dollar-cedi rate

     

     

    Adnan Adams Mohammed

     

    As the Ghanaian currency, Cedi, losses value further edging to GHc17 to a US dollar, the Bank of Ghana Governor has shared his frustrations.

     

    Dr Ernest Addison indicates that, despite the wishes of Ghanaians of seeing a stronger cedi against the international trading currency, the health of the economy is also a concern, that is why the Central tries to manage between the country’s reserves and the exchange rate.

     

    The BoG’s approach this is to balances the need to strengthen reserves with prudent currency management, striving to foster longer-term stability and investor confidence.

     

    “We have $7 billion in foreign exchange reserves. If I want to drive the dollar-cedi rate to GHS 10, I can do that tomorrow. But what about the day after tomorrow? So, we are balancing various factors, trying to build reserves and manage the exchange rate. All is not lost yet; there is some silver lining in the cloud,” Dr. Addison said while speaking at the launch of ‘The Concise Law of Banking,’ a newly published banking law guide.

     

    “These are the problems in our economy. The issues about the exchange rate and financial sector. But I think the good news is that we are making progress because the developments we are seeing are not different from other jurisdictions,”

     

    As the season inches closer, the depreciation of the Cedi is expected to continue at a faster rate. However, the Central Bank plans to slow or maintain the current exchange rate amidst Ghana’s progress under the International Monetary Fund’s (IMF) Extended Credit Facility programme.

     

    The local currency declined against major global currencies last week, fuelled by increasing demand from both domestic and offshore markets.

     

    To address this, Ghana’s Central Bank accepted all bids—amounting to $89.3 million—in its weekly seven-day foreign exchange auction.

     

    However, this intervention did little to bolster the cedi, which fell by 1.06% week-on-week, settling at an average of GH¢16.55 per U.S. dollar.

     

    The currency also slipped 0.23% and 0.28% against the British pound and the euro, respectively.

     

    This week opened with the cedi trading at GH¢16.65 to the dollar, extending its slide.

     

    Since the start of the year, the cedi has lost over 26% of its value against the dollar, ranking it among the three weakest currencies in Sub-Saharan Africa.

     

    Looking ahead, the Central Bank plans an additional $20 million auction directed at Bulk Oil Distribution Companies (BDCs) in a bid to relieve some of the demand pressure.

     

     

     

     

  • Ghana engages economic partners with a call for improved trans-African trade

    Dr Ernest Addison

     

    Adnan Adams Mohammed

     

    Ghana government officials at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington DC, held separate meetings with bilateral partners to deepen economic cooperation.

     

    Among the partners were the European Bank for Reconstruction and Development (EBRD) and the World Gold Council.

     

    The leader of Ghana’s delegation, Governor of the Bank of Ghana (BoG), Dr. Ernest Addison and his team engaged with Dr. Heike Harmgart, Managing Director for Sub-Saharan Africa at the EBRD. Also present were Burkard Kubel-Sorger, Chief Finance Officer (CFO)/Vice President, and Artur Radziwill, Director of Country Economics, Strategy, and Policy at the EBRD.

     

    Additionally, the Governor held a separate meeting with the World Gold Council, represented by Kurtulus Taskale Diamondopoulos, Director of Central Banks and Public Policy, and Shaokai Fan, Head of Asia-Pacific and Global Head of Central Banks.

     

    The meetings deliberated on potential collaborations for Ghana’s economic sustainability, with mutual benefits for both the country and the development partner.

     

    Dr. Harmgart expressed the EBRD’s interest in the operations of the Bank of Ghana, aiming to better understand the Central Bank’s role in managing the country’s macroeconomic framework, particularly its monetary policy.

     

    Dr Harmgart praised Ghana for successfully completing its debt restructuring, a key component of the country’s ongoing $3 billion Extended Credit Facility (ECF) programme with the IMF, describing it as a model for other nations.

     

    Dr Addison in his remarks acknowledged the sacrifices made by Ghanaians, which helped the government navigate tough times to secure the IMF loan and complete the debt restructuring programme.

     

    He noted that these efforts have been critical to the country’s economic recovery following the COVID-19 pandemic.

     

    The discussion with the World Gold Council, a non-governmental organization committed to enhancing transparency in the global gold supply chain, focused on standardisation.

     

    Kurtulus Taskale Diamondopoulos outlined the Council’s role in setting standards, shaping policy, and establishing principles for a sustainable gold market.

     

    Dr. Addison called for a partnership aimed at certifying gold refineries in Ghana to enhance the gold value chain. As Africa’s largest gold producer and the sixth largest in the world, Ghana mined 4.03 million ounces of gold in 2023. Over the past 12 months, the price of gold surged from $1,947 to $2,715.

     

    Gold in Ghana, as in other markets, serves as a store of value, hedging against inflation and currency fluctuations.

     

    It also functions as a central bank reserve and is widely used in jewellery, coins, and other ornaments.

     

    Meanwhile, Ghana’s Finance Minister, Dr. Mohammed Amin Adam, speaking at same event, emphasised the crucial role of intra-African trade in bolstering the country’s economic recovery and resilience against external shocks.

     

    He underscored the need for African nations to unite in overcoming the barriers that hinder effective trade within the continent.

     

    “Ghana cannot achieve this alone,” he said, adding, “We must unite to address the obstacles preventing us from realising the dream of a robust intra-African trade system.”

     

    The Finance Minister identified the African Continental Free Trade Area (AfCFTA) as a key driver for regional integration and economic growth in Ghana.

     

    He noted that intra-African trade could catalyse job creation, economic expansion, and poverty reduction, while also acknowledging the support of global institutions like the World Bank and the International Monetary Fund (IMF) in helping to dismantle trade barriers.

     

    “We recognise intra-African trade as essential for economic growth and are committed to eliminating the challenges with the continued support of our global partners,” Dr Adam stated.

     

    Dr Adam also called on the IMF and World Bank to back initiatives like regional payment systems, which are crucial to unlocking the full potential of intra-African trade and facilitating seamless transactions across borders.

     

    “Ghana and the region need guarantees to mitigate risks associated with payment systems,” he explained, highlighting the importance of a unified, intra-continental payment framework to ensure the successful implementation of the AfCFTA.

     

    “We recognise that financial inclusion and harmonised trade routes are necessary to ensure inclusive implementation of the AfCFTA,” he added.

     

    The Minister also engaged in bilateral talks with Ghana’s development partners.

     

    These discussions have focused on critical issues such as Ghana’s development operations, energy sector reforms, and climate change strategies.

     

    During these meetings, the Finance Minister stressed the important role Ghana’s partners play in stabilising the country’s economy.

     

    He also advocated for reforms to the global financial architecture, pushing for greater African influence in shaping the flow of global capital and international support.

     

    Dr Adam made these remarks at the ACET Roundtable on Africa’s Agenda for Financial Architecture Reform, co-hosted by the African Union and the United Nations Economic Commission for Africa (UNECA) at the Elliott School of International Affairs, George Washington University, last week.

     

     

     

     

  • Banks credit risk threatens sector’s recovery

    Bank of Ghana

    Adnan Adams Mohammed

     

    Ghana’s banking sector recorded a heightening credit risks in the first half of the year.

     

    According to Bank of Ghana data, the industry’s non-performing loans ratio was 24.1 percent in June 2024, up from 18.7 percent in June 2023. Representing more than 5 percent rise in NPLs.

     

    Although, not directly related to credit risk, but a worrying trend in the banking sector is total monetary value lost to fraud. Cases recorded increased by 21% in 2023 to GH¢63 million compared to GH¢52 million in 2022. The number of staff involved in these fraudulent activities in Banks and SDIs rose from 188 in 2022 to 274 in 2023, representing an increase of 46%. This erodes depositors confidence which eventually affects banks funds available for lending.

     

    “Elevated credit risks pose threats to the recovery process,” Bank of Ghana Governor, Dr Ernest Addison has warned while speaking at the annual general meeting of the Ghana Association of Banks in Accra, last week. “This is despite improved performance of the sector.”

     

    “The consistent rebound in profits, adherence to recapitalisation plans, and enforcement of strict credit underwriting standards are expected to help ensure that banks remain on the path to full recovery and resilience,” he added.

     

    “Enhanced performance of the banking sector, amid the obvious challenges, was made possible in part through the unrelenting partnership of GAB with the Bank, especially during the difficult DDEP process.”

     

    The Governor urged the association to reflect on the recent developments in the banking sector, strategise to consolidate the gains made and aim to sustain confidence in the industry for economic growth.

     

     

  • Banks resilience improves..but more need to be done

     

    Banking sector

     

    Adnan Adams Mohammed

     

    Ghana’s banking sector remains resilience in spite of global financial crisis, the Bank of Ghana Governor has said.

     

    Justifying that, banks are posting strong capital and liquidity buffers, improved performance notwithstanding the impact of the Domestic Debt Exchange Programme (DDEP) on the balance sheet of banks.

     

    In spite of these performance, the Governor believes more efforts needed in terms of monetary policy and and economic management reforms to solidify the resilience of the banking sector.

     

    “A lot remains to be done to promote a more resilient banking industry”, Dr Ernest Addison said when addressing the annual general meeting of the Ghana Association of Banks last week in Accra. Emphasising that, “several policy measures have been implemented to achieve the regulator’s objective of ensuring that the sector remains “strong, stable, and viable” to support the country’s growth agenda.”

     

    In the first half of 2024, the banking sector performance “pointed to continued recovery from the impact of the DDEP”, the Governor indicated.

     

    Total banking sector assets grew by 33.3 per cent to GH¢323.1 billion as of the end of June 2024, relative to 21.2 per cent growth as of the end of June 2023.

     

    Profitability, liquidity, and efficiency indicators also improved over the period.

     

    Also, the Capital Adequacy Ratio (CAR), adjusted for reliefs, remained unchanged at 14.3 per cent, between June 2023 and June 2024. Without reliefs, the CAR was reported at 10.6 per cent in June 2024, higher than the 7.4 per cent recorded in June 2023, Dr Addison added when he spoke at the recently held annual general meeting of the Ghana Association of Banks.

     

    It is remarkable to acknowledge that, in February 2021, the Bank of Ghana was admitted as a member of the Basel Consultative Group (BCG) in recognition of the continued efforts to enhance the enabling regulatory environment.

     

    Ghana, therefore, became one of the four countries, including Tunisia, Mauritius, and Nigeria to obtain BCG membership at that time.

     

    “Over time, the Bank has actively participated and contributed significantly to BCG activities aimed at promoting supervisory cooperation and implementing supervisory standards by the Basel Committee on Banking Supervision (BCBS),” Dr Addison noted.

     

    “This achievement has further strengthened the Bank’s commitment to promote the safety and soundness of the banking sector through effective regulation and supervision. In furtherance to this, the Bank continues to ensure the evolution of its regulatory reform roadmap to address the emerging risks in the financial system; inputs from new and revised policy papers by international standard-setting bodies such as the Basel Committee on Banking Supervision (BCBS); concerns and suggestions raised by key stakeholders such as GAB; and other external shocks to the Ghanaian financial system and economy.”

     

    Dr Addison disclosed that, the Bank commenced a thematic review of banks’ corporate governance practices to assess the effectiveness of their governance framework.

     

    “The exercise is ongoing and aims at ensuring full compliance with regulatory requirements such as the Corporate Governance and Fit and Proper Persons directives. Plans are underway to conduct a thematic review of the viability and sustainability of banks’ business models,” he said.

     

     

     

  • Ghana misses revenue target by 25% in first four months.

     

    Adnan Adams Mohammed

    Data from the Bank of Ghana indicates that, total revenue and grants for the first four months of 2024 amounted to GH¢30.4 billion (2.9 percent of GDP) compared with a target of GH¢37.7 billion (3.6 percent of GDP).

    Bank of Ghana

    Also, total expenditures on commitment basis, including other outstanding payments for the period amounted to GH¢49.0 billion (4.7 percent of GDP) compared with a target of GH¢55.5 billion (5.3 percent of GDP).

    According to the Bank of Ghana Governor, Dr Ernest Addison, Ghana’s fiscal performance is “broadly” in line with the targets agreed under the International Monetary Fund (IMF) Balance of Payment supported programme.

    Provisional data on the execution of the budget “shows that the primary balance (commitment basis) was in a deficit of 0.6 percent compared with a target deficit of 0.2 percent.”

    The overall broad budget balance (commitment basis), “was a deficit of 1.8 percent of GDP compared with a deficit target of 1.7 percent of GDP.

  • Govt recapitalizes state interest banks by September

    By Elorm Desewu

    The government plans to recapitalize all the state interest banks in the country by the end of September this year.

    Cabinet has approved an amount of GH¢22.8 billion or 2.6% of GDP to further strengthen the financial system and rebuild capital buffers to improve resilience. This overall resource envelope will be deployed under the framework of the Ghana Financial Stability Fund (GFSF) in phases with an initial commitment of the Ghana Cedi equivalent of U$750 million.

    The initial commitment will consist of a funded portion of US$250 million from the World Bank/IDA and US$500 million to be funded from the issuance of marketable debt to help rebuild capital buffers of affected banks and other eligible financial institutions.

    The support for the financial system under the GFSF framework will be based on transparent eligibility criteria for Financial Institutions (FIs) which include full participation in the DDEP, a viable capital restoration plan notwithstanding the GoG debt restructuring impact (discounting regulatory forbearance and other reliefs), and existing GoG/GAT equity participation.

    Under the GFSF framework, Government’s direct budget funding will focus on ensuring the recapitalization of state interest banks such as GCB, CBG, ADB and NIB, among others. Specifically, all state interest banks will be capitalised by endSeptember 2023. Government will also streamline the strategic focus of all stateowned banks to ensure that they better support areas of the economy such as agriculture, industry, and key SMEs.

    The Bank of Ghana expects banks to submit recapitalization plans with regulatory approval for such plans scheduled for end-September 2023.

    For privately owned FIs, a commitment will be required from other shareholders to inject additional capital to complement GoG’s funding support to ensure that dilution of private shareholders is kept to a minimum.

    Evidence of strong governance and prudent management is also required to be demonstrated. For example, banks which are to benefit from the arrangement must achieve a minimum of 75 percent implementation rate of the most recent on-site examination prescriptions, and full compliance with the BoG’s Corporate Governance Directive, Cyber Security Directive, and Risk Management Directive.

    Government will also strengthen and preserve the resilience of the insurance industry, including the recapitalization of the stateowned SIC Life Insurance Company, and work to restore normalcy in the debt capital market to improve liquidity, especially for capital market institutions. This is important in positioning the country to continue to expand the frontiers of private sector growth.

    The Government will also support GAT-assisted banks and other locally controlled privately-owned banks that request assistance from the GFSF in line with the operational framework agreed with the IMF and the World Bank. The World Bank facility under the GFSF will provide a debt only (non-equity dilution) capital support to banks, both foreign-owned and locally-owned to support their strong recovery post the DDEP.

    The Ministry of Finance is working with the Bank of Ghana and other regulators to ensure that the framework of the GFSSS is finalised, and its operationalisation commences immediately after the approval of the Mid-year budget.

     

  • BoG reviews health of economy

    The seven member of the Monetary Policy Committee, (MPC), of Bank of Ghana and chaired by the governor, Dr Ernest Addison will this week begin its bimonthly meeting to review the health of the economy and also announce a new policy rate for the next couple months.

    The policy rate is the rate at which universal banks borrow from the central bank as their last resort and also serves as a benchmark in setting the Ghana Reference Rate.

    Although inflation has inched up marginally, some economists believe the policy rate could be maintained at 29.5 percent for the second consecutive time.

    The recent price developments indicate that the inflation surge in the economy, witnessed since December 2021, has peaked. The latest readings since the January indicated consistent drops in headline inflation from the peak of 54.1 percent in December 2022 to 53.6 percent in January 2023, 52.8 percent in February, 45 percent in March and 41.2 percent in April, 42.2 percent in May and 42.5 percent in June this year.

     

    The main drivers of this inflationary trend are food and non-food items, which account for 54.2% and 33.4% respectively.

    The MPC meets bi-monthly to assess economic conditions and risks to the inflation outlook, after which a policy decision is made on positioning the MPR. Each decision signals a monetary policy stance of tightening, easing or stay put.

     

    The policy decision is arrived at by consensus with each member stating reasons underlying a preferred MPR decision.

     

    The primary objective of the Bank of Ghana is to pursue sound monetary policies aimed at price stability and creating an enabling environment for sustainable economic growth.

    Price stability, in this context, is defined as a mediumterm inflation target of 8±2 percent. This implies that headline inflation should be aligned within the medium-term target band for the economy to grow at its full potential without excessive inflation pressures.

    Other tasks for the Bank of Ghana include promoting and maintaining a sound financial sector with efficient payment systems through effective regulation and supervision. This is important for intermediation since risks associated with financial markets are also considered in the monetary policy formulation process.

  • BoG suspends budget financing beginning 2023

    BoG suspends budget financing beginning 2023

    By Elorm Desewu

    The Bank of Ghana, (BoG) has disclosed that it would no longer finance government’s large budget overrun from next year 2023.

    According to the governor of the BoG, Dr Ernest Addison, “the country has fundamental issues that we have to address such as fiscal problems, very large deficits which is not getting the adequate financing and therefore central bank was providing the financing on a temporary basis. Hopefully by the end of this year, that would not be there to complicate the inflation management issue”.

    He said the financing of government’s deficit was just a temporary accommodation till the end of this year adding till the IMF’s program is successfully completed and implemented there will be no need for Bank of Ghana’s accommodation going into 2023. “In fact we do not expect the central bank to finance the budget into 2023 that should be a thing of the past” he stressed.

    Provisional data on fiscal operations for January to September 2022 resulted in an overall budget deficit of GH¢41.7 billion (7.0 percent of GDP), against a programmed deficit target of GH¢36.7 billion (6.2 percent of GDP). The corresponding primary balance was a deficit of 1.6 percent of GDP, against a deficit target of 1.0 percent of GDP.

    The higher-than-projected deficit was on account of revenue shortfalls alongside expenditure overruns. Total Revenue and Grants amounted to GH¢65.4 billion (11.0 percent of GDP), compared with a target of GH¢67.3 billion (11.4 percent of GDP), representing a shortfall of 2.8 percent compared to target and year-on-year growth of 33.2 percent.

    Total Expenditure (including arrears clearance and discrepancy) for the period amounted to GH¢109.4 billion (18.5 percent of GDP), above the target of GH¢103.99 billion (17.6 percent of GDP) by 5.2 percent. The resulting overall fiscal deficit of GH¢41.7 billion was financed mainly from domestic sources.

    But for 2023 fiscal year, the government is projecting a fiscal deficit of GH¢61,475 million, equivalent to 7.7 percent of Gross Domestic Product (GDP) and a corresponding Primary balance deficit of GH¢8,925 million, equivalent to 1.1 percent of GDP.

    Total Revenue and Grants is projected at GH¢143,956 million or 18.0% of GDP and is underpinned by permanent revenue measures – largely Tax revenue measures – amounting to 1.35 percent of GDP.

    Total Expenditure including clearance of arrears is projected at GH¢205,431 million or 25.6% of GDP.

    This estimate shows a contraction of 0.3 percentage points of GDP in primary expenditures (commitment basis) compared to the projected outturn in 2022 and a demonstration of Government’s resolve to consolidate its public finances.