Ghanaian News

2024 Budget: Government cuts spending to GHC226.7 billion

The government has projected to spend about GHC226.7 billion – 21.6% of gross domestic product (GDP) for 2024, Finance Minister Ken Ofori-Atta has said.

This projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022.

The government anticipates spending about GHC205 billion in 2023, a 34% increase from the GHC153 billion in its 2022 expenditure budget.

Presenting the 2024 Budget Statement in Parliament on Wednesday (15 November), Ofori-Atta, “This large decrease comes from the combination of fiscal consolidation efforts of 4.9 percentage points of GDP, reflecting an adjustment in revenue by 1.0 percentage point and primary expenditure by 4.0 percentage point of GDP.”

“The potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability,” he added.

Historic milestone
The minister also said the country’s economy has hit a historic milestone as it is projected to hit GHC1 trillion of GDP in 2024, says Ofori-Atta

“Mr Speaker the 2024 Budget is even more significant because we crossed the 1 trillion gross domestic product mark for the first time in our economic history.

“Let me repeat Mr Speaker, Ghana’s economy under President Akufo-Addo in 2024 final year in office is projected to be GHC1 trillion from the GHC219.5 billion that we inherited in 2016,” he added.

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