The Government of Ghana (GoG) is seeking approval from Parliament to spend a total of GH¢113.75 billion, equivalent to 26.2 per cent of the total value of goods and services produced in the country as measured by gross domestic product (GDP) in the 2021 financial year, to effectively roll out its policies.
Christened ‘Won ya Wohie Budget”, literally meaning “We are moving forward”, the estimates of the government’s revenue and expenditure were on the theme: “Economic Revitalisation through Completion, Consolidation & Continuity. The government intends to use its policies as outlined in the budget to restore hope and confidence in the people, create jobs, continue with existing infrastructure projects as it aims to increase GDP growth to five per cent by the close of the year under review.
The Majority Leader and Minister of Parliamentary Affairs, Mr Osei Kyei-Mensah-Bonsu, who laid the Budget and Economic Policy of the government for the 2021 financial year, the first in the second term of President Nana Addo Dankwa Akufo-Addo, before the House last Friday, further outlined how the government intended to raise funds to finance its expenditure .
He said the proposed amount would be used to finance the wage bill, cover interest payments, COVID-19 related expenditures, security, and funding of government flagship programmes.
Giving a breakdown of the expenditure, he said an amount of GH¢25.8 billion would be spent on wages and salaries; while GH¢5.97 billion would be used to cater for goods and services of the government. An amount of GH¢35.86 billion would be spent on interest payments, while capital expenditure was projected at GH¢11.423 billion.
Use of goods and services is also projected at GH¢5.97 billion or 1.4 per cent of GDP. This represents 5.2 per cent of the projected total expenditure.