Highlights of the supplementary budget

Accra, Aug. 26, GNA - The following are the highlights of the supplementary budget presented to Parliament on Tuesday by the Minister of Finance and Economic Planning, Dr Kwabena Duffuor.

The budget review covered January to June 2009.

- Government seeking approval for supplementary appropriation of GH¢252.8 million.

- Government maintains budget deficit at 4.5 per cent of the projected GDP.

- It is projected that inflation will fall to 14.5 per cent by the end of the year.

- Overall current account registered a surplus of US$125.9 million, compared to a deficit of US$1,449.0 million registered during the same period in 2008.

- Inflation pressures built up in late 2008 have significantly reduced rate dropped in July.

- Rate of depreciation of the cedi has slowed down with imminent convergence of the interbank market and forex bureau market exchange rates.

- Sharp drop in the trade deficit causing the current account to register a surplus in many years.

- Gross international reserves enough to cover nearly two months of imports of goods and services.

- Government successfully managed to secure respectable budgetary, project and balance of payments support from development partners

- Confidence and stability in the economy is rapidly being restored

- For the first six months of 2009, trade balance amounted to a deficit of US$955.8 million, compared to a de ficit of US$2,155.0 million recorded at the end of June 2008.

- Total exports amounted to US$3,003.8 million, compared with US$2,845.8 million during the corresponding period of 2008.

- Receipts from cocoa beans and products amounted to US$1,061.0 million,

- Total receipts from gold exports amounted to US$1,213.9 million. The growth in gold exports was on the back of a marginal increase of 2.0 percent in volume, on year-on-year basis, to 1,351,798 fine ounces.

- Total merchandised imports amounted to US$3,872.4 million compared to US$5,000.9 million for the corresponding period of 2008

- The value of oil imports during the first half of 2009 amounted to US$449.6 million compared with US$1,326.5 million during the first half of 2008.

- The value of total non-oil imports for the first half of the year 2009 amounted to US$3,425.8 million compared with US$3,674.4 million for the same period in 2008

- Remittances to private individuals amounted to US$728.3 million, compared with US$822.8 million for the same period in 2008 due to the effects of the global credit crunch

- Gross international reserves totalled US$1,705.2 million, enough to cover 1.9 months of imports of goods and services and almost reaching the target of 2.0 months of imports cover set for 2009.

- Fiscal deficit including divestiture receipts was GH¢965.4 million, equivalent to 4.5 percent of GDP1. This compares with a targeted deficit of GH¢1,400.5 million, equivalent to 6.5 percent of GDP.

- Total receipts amounted to GH¢4,095.2 million

- Domestic revenue totalled GH¢2,411.0 million

- On year-on-year basis, domestic revenue increased by 19.1 percent.

- Total tax revenue amounted to GH¢2,162.6 million

- Yield from National Health Insurance Levy (NHIL) for the first six months of 2009 amounted to GH¢153.3 million, against a budget target of 140.9 million.

- Total grant disbursements from our Development Partners amounted to GH¢587.6 million

- Receipts from programme and project loans amounted to GH¢421.3 million

- Total payments for the first half of 2009, comprising discretionary and statutory payments, amounted to GH¢4,095.2 million, against a budget target of GH¢4,892.4 million

- Total statutory payments amounted to GH¢1,161.5 million, equivalent to 5.4 percent of GDP.

- External Debt Service for the period under review was GH¢232.1 million

- Personal Emoluments amounted to GH¢1,099.7 million, equivalent to 5.1 percent of GDP.

- Overall budget balance including divestiture, amounted to a deficit of GH¢965.4 million, equivalent to 4.5 percent of GDP, against a target deficit of GH¢1,400.3 million, equivalent to 6.5 percent of GDP. - Roadmap for Single Spine Salary Structure (SSSS) is being pursued to be implemented in 2010. - Government has paid the salary arrears of GH¢951,000 for June and July 2009 to Ghana Railway Corporation staff - MDAs submitted outstanding arrears and commitments related to 2008 amounting to GH¢1.7 billion - Payment of judgment debt amounting to GH¢49.2 million against a budget provision of GH¢30 million.

- Ghana Commercial Bank's exposure to the oil sector stands at about GH¢989.7 million, while the indebtedness of the sector to the Standard Chartered Bank is about US$165 million

- National Fiscal Stabilisation Levy Act expected to generate an additional revenue of GH¢11 million for the rest of the year.

- As a result of the additional budget support from the World Bank, the net domestic financing of the budget has been reduced to GH¢1,032.8 million, while programme loans have increased to GH¢611.7 million.