2024 Mid-Year Budget Review: Here are the revised targets of the government

The Minister for Finance, Dr. Mohammed Amin Adam, on Tuesday, July 23, 2024, presented the 2024 Mid-Year Budget Review.

The presentation, which is in accordance with Section 28 of the Public Financial Management Act, 2016 (Act 921), allows the Government to review the economic targets it set for the country in the Budget and Economic Statement of the 2024 fiscal year.

During the presentation, the Minister noted the decisive policies implemented by the Nana Addo Dankwa Akufo-Addo government over the past two years were yielding the expected results and are getting the country out of the woods.

He pointed out the 4.7% 2024 1st quarter GDP (Gross Domestic Product) growth rate announced by the Ghana Statistical Service against the 3.1% target, as well as the reduction in inflation to 22%, as evidence showing that the economy is rebounding.

As such, he announced a positive revision of most of the country's economic targets. For instance, the overall real GDP growth rate was revised upwards from 2.8% to 3.1%.

Below are the major revisions for the 2024 Budget:

• Overall real GDP growth rate revised upwards from 2.8% to 3.1%;

• Non-oil real GDP growth rate revised upwards from 2.1% to 2.8%;

• Growth in GDP deflator scaled down from 20.2% to 17.5%;

• Nominal overall GDP has been revised from GH¢1,050 billion to GH¢1,020 billion;

• Non-oil GDP has been revised from GH¢979 billion to GH¢977.093 billion;

• End-period headline inflation remains unchanged at 15%;

• Primary balance on commitment basis is maintained at a surplus of 0.5%; and

• Gross international reserves (including oil funds and encumbered/pledged assets) to cover not less than 3.0 months of imports.

The Minister also announced revisions to the Government's fiscal framework, including its revenue targets, as follows:

• Total revenue and grants revised upward by 0.5 percent to GH¢177,220 million (17.4% of GDP) in 2024, from the 2024 Budget target of GH¢176,414 million (16.8% of GDP) - largely reflecting an increase in non-oil non-tax revenue from GH¢14,837 million (1.4% of GDP) to GH¢15,638 million (1.5% of GDP);

• Total expenditure (commitment) revised downward by 2.1 percent, to GH¢219,749 million (21.5% of GDP) from the original budget projection of GH¢226,681 million (21.6% of GDP);

• Overall balance on commitment basis revised from a deficit of GH¢50,267 million (4.8% of GDP) to a deficit of GH¢42,529 million (4.2% of GDP). The primary balance on commitment basis is maintained at a surplus of 0.5% of GDP;

• A cash deficit of GH¢54,142 million (5.3% of GDP) – expected to be financed from both foreign and domestic sources;

• Domestic financing will amount to GH¢38,920 million (3.8% of revised GDP), representing 71.9% of the total financing for 2024.

BAI/NOQ