Ghana records 6.3% deficit, shoots above target in first seven months of 2013

Ghana’s deficit reached 6.3% of GDP above the target 5.6%, the central bank said September 18, 2013 citing the country’s preliminary fiscal data for the first seven months of the year.

According to the Bank of Ghana, both revenue and expenditure remained below their respective targets.

The country’s total revenue and grants was GH¢10.4 billion, lower than the target of GH¢12.5 billion while expenditure amounted to GH¢16.0 billion, also lower than the budget target of GH¢17.5 billion, said the BoG.

“The developments resulted in a fiscal deficit (cash basis) equivalent to 6.3% of GDP against a target of 5.6%,” Governor of the central bank, Dr Kofi Wampah told reporters in Accra.

According to Dr Wampah, the deficit was financed mainly from domestic sources which resulted in a Net Domestic Financing (NDF) of GH¢4.4 billion.

Foreign financing of the budget amounted to GH¢1.3 billion, marginally lower than the GH¢1.5 billion target, he added.

Also the BoG said it provided GH¢1 billion to finance part of the deficit.

By Ekow Quandzie