Government recently announced a revision to the 2024 macroeconomic framework in response to ongoing domestic and global economic changes, particularly the debt restructuring program with external and domestic creditors.
The Minister of Finance, Dr Amin Adam, presented the Mid-year Budget Review on the floor of Parliament, highlighting key revisions to the macro-fiscal targets for the year.
One notable adjustment includes an increase in the overall real GDP growth rate from 2.8 percent to 3.1 percent, with non-oil real GDP growth rate also revised upwards from 2.1 percent to 2.8 percent. Additionally, the growth in GDP deflator has been scaled down from 20.2 percent to 17.5 percent.
The Nominal overall GDP has been revised to GH¢1.02 trillion, with non-Oil GDP revised to GH¢977 billion. It was noted that the end-period headline inflation rate remains unchanged at 15 percent, while gross international reserves are expected to cover at least 3.0 months of imports.
Under the fiscal framework for the year, total revenue and grants have been revised upward to GH¢177.2 billion, representing 17.4 percent of GDP. This adjustment reflects an increase in Non-Oil Non-Tax Revenue, which has been boosted by dividends from interest accrued in the ESLA accounts.
Total expenditure on a commitment basis has been revised downwards to GH¢219.7 billion, equivalent to 21.5 percent of GDP. The decrease is primarily attributed to a downward revision in interest payments following the external debt restructuring.
The overall balance on a commitment basis has been revised from a deficit of GH¢50.3 billion to a deficit of GH¢42.5 billion. The cash deficit of GH¢54.1 billion is expected to be financed from both foreign and domestic sources, with net foreign financing amounting to GH¢15.2 billion and domestic financing pegged at GH¢38.9 billion.
These adjustments in the macroeconomic framework aim to address the evolving economic landscape and ensure stability amidst changing circumstances. The government remains committed to achieving its fiscal targets and sustaining economic growth in the coming months.
