Public budget deficit hits GH¢90 billion

Minister of Finance and Economic Planning, Mr. Seth Terkper has confirmed that the country’s public budget deficit now stands at GH¢90 billion.

The minister presenting the 2015 Mid-Year Review and Supplementary Budget Estimates to Parliament said the 2015 budget and revising revenue and expenditure estimates, the supplementary budget “will result in an overall budget deficit of GH¢9.7 billion.”

“Mr. Speaker, the provisional debt stock as at end May, 2015 stood at GH¢90.0 billion representing 67.53 percent of GDP. This was made up of GH¢53.8 billion and GH¢36.2 billion for external and domestic debt, respectively.”

He said the government needs an additional Gh¢865,789,380.00 to meet targets outlined in the 2015 budget.

The statement also outlined the revised 2015 Macroeconomic Targets and Fiscal Framework.

“In spite of the estimated lower spending from oil revenue and domestic interest payments, some other expenditure items such as external interest payment and foreign financed capital expenditures are estimated to be higher mainly as a result of the exchange rate depreciation.

“As a result of lower oil revenue inflow due to the decline in crude oil prices, goods and services expenditures have been revised downwards by GH¢113.6 million, from GH¢1.97 billion to GH¢1.9 billion.

“Mr. Speaker, in anticipation of the proposed Eurobond issue of US$1.5 billion in 2015, domestic financing is estimated to be lower than projected in the 2015 Budget. In this regard, domestic interest payment has been revised from GH¢8.0 billion to GH¢7.7 billion. On the other hand, external interest is estimated at GH¢1.6 billion, higher than the 2015 Budget estimate by GH¢72.6 million. On the whole, total interest payments for 2015 have been revised downward by GH¢227.4 million, from GH¢9.6 billion to GH¢9.3 billion.

Click here to read the full statement: 2015 Mid-Year Review and Supplementary Budget Estimates

“Due to the lower estimated revenue from oil, and in accordance with the Petroleum Revenue Management Act (Act 815), transfers to GNPC from the oil revenue have been revised downwards from GH¢697.7 million to GH¢497.9 million.

“As a result of a short fall in oil prices, domestically financed capital has been revised downwards by GH¢722.8 million, down from GH¢2.6 billion to GH¢1.8 billion. On the other hand, foreign-financed capital expenditure has been revised upwards from GH¢4.4 billion to GH¢4.5 billion on account of the exchange rate depreciation.”