Ghana’s Parliament approves $15.5b spending plan for 2014

Ghanaian legislators have approved the 2014 Budget in which the government plans to spend $15.5 billion next year.

Parliament made the approval yesterday December 4, 2013.

The estimated expenditure for the year represents 17.7% rise over the projected outturn for 2013, according to the country’s 2014 Budget Statement presented in Parliament November 19, 2013 in Accra.

Ghana raised its spending budget for 2014 fiscal year to $15.5 billion (GH¢34.9 billion) equivalent to 33.1% of GDP.

Finance Minster Seth Terkper said the spending will also cover arrears and outstanding commitments. “…Of this amount, GH¢2,816.2 million, equivalent to 2.7% of GDP and 8.1% of total expenditure will be used for the clearance of arrears and outstanding commitments,” he said.

The government expect to raise GH¢26 billion, equivalent to 24.6% of GDP, in revenue and grants in 2014.

“Based on the revenue and expenditure estimates, the 2014 budget will result in an overall budget deficit of GH¢8.9 billion, equivalent to 8.5% of GDP,” Terkper noted.

According to the Finance Minister, financing of the budget deficit will be from both domestic and foreign sources.

By Ekow Quandzie