Ghana records 4.5% budget deficit as public debt widens to GH¢39.1b in 2013 first half-year

Ghana’s budget deficit reached 4.5% of GDP as the country’s total debt hit GH¢39.1 billion at the end of the first half-year of 2013, according to the Bank of Ghana (BoG).

The central bank’s preliminary data for the first half-year show that the deficit in monetary terms was GH¢4 billion.

“It was was within target for the period,” BoG Governor Dr Kofi Wampah said July 31, 2013 at a press conference.

According to the BoG, the deficit was “financed mainly from domestic sources, resulting in a Net Domestic Financing (NDF) of GH¢3 billion, lower than the budget target of GH¢3.2 billion” adding that foreign financing amounted to GH¢1billion.

On Ghana’s public debt, the central bank indicated that it increased to GH¢39.1 billion which was 43.9% of GDP as at the end of June 2013, from GH¢35.1 billion in December 2012.

This was because the government spent more than the revenue it accrued during the half-year. The government’s total revenue and grants during the 2013 first-half period was GH¢9.5 billion against the GH¢10.6 billion target.

While total expenditures for the first half amounted to GH¢13.5 billion, compared to the target of GH¢14.6 billion.

Out of the total public debt stock, the BoG observed that the domestic component amounted to GH¢20.9 billion while the external component stood at $9.3 billion.

By Ekow Quandzie