Ghana’s fiscal deficit of GDP in 2020 was 16.0%, not 11.7% – IMF

The International Monetary Fund has contradicted government’s fiscal deficit of Gross Domestic Product, GDP claim of 11.7% achieved in 2020, as its data shows that government financing gap is actually 16% of GDP in 2020.

This made it one of the highest among low-income developing countries.

Zambia followed closely with a budget deficit to GDP ratio of 13.9 %. Government in the 2021 Budget and Economic Policy said its fiscal deficit gap between revenue and expenditure to GDP is estimated at 11.7% of GDP.

But the Fund’s April 2021 Fiscal Monitor stated otherwise. It is also projecting a financing gap of 12.6% and 10.4% in 2021 and 2022 respectively.

In 2023, 2024, and 2025, the Bretton Wood institution is forecasting a fiscal deficit of GDP of 9.3%, 9.1% and 8.9%.

All things being equal, the gap between revenue and expenditure will fall to 6.8 percent in the year 2026.