As hoped, the Ghanaian Parliament has just approved by resolution the GHC 27.4 billion (FCFA 2,624 billion), which the government is requesting for spending for the first quarter of 2021. The approval came just two days after Finance Minister Ken Ofori-Atta came to the House to seek approval of the amount, as a pre-appropriation expenditure to continue government services, from January to March next year.

Ghanaian Finance Minister Ken Ofori-Atta

The approval was preceded by a quiet debate, on both sides of the House, which supported the motion to approve the budget. The Chairman of the Finance Committee, Dr. Mark Assibey-Yeboah, proposed to the Assembly to adopt his report and approve it by resolution of 27.4 billion GHC (2,624 billion FCFA), a proposal which was supported by the leader of the minority, Mr. Haruna Iddrisu.

Introducing the report, Dr Assibey-Yeboah highlighted the planned expenditures to be covered by the budget for the first quarter of next year. He said that 7.7 billion GHC (737 billion FCFA), would be used to pay salaries, 1.6 billion GHC (153 billion FCFA), for the use of goods and services, 7 billion GHC (over 670 billion FCFA), for the service of interest payments, 259 million GHC (24.8 billion FCFA), in grants, 4.3 billion GHC (about 412 billion FCFA), in grants to other government units, 41.3 million GHC (about 4 billion FCFA), as social benefits, 1.9 billion GHC (182 billion FCFA), for capital expenditure and 813.6 million GHC (78 billion FCFA), for other expenditure .

He told the House that the total revenue and subsidies for the first quarter of 2021 should amount to 13.3 billion GHC (1,273 billion FCFA), or 3.0% of GDP. Total tax revenue for the period January to March 2021, he said, is expected to amount to 10.4 billion GHC (996 billion FCFA), while non-tax revenue is expected to reach 1.9 billion GHC ( 182 billion FCFA).

Dr Assibey-Yeboah, parliamentarian

“ Total expenditure for the first quarter of 2021 is projected at 23,664,596,915 GHC (over 2,266 billion FCFA), or 5.3% of GDP. Of this amount, capital expenditure for the period is estimated at 1,903,658,408 GHC (182.3 billion FCFA). The total budget for the first quarter has an overall deficit balance of GHC 10,674,343,415 or 2.4% of GDP. This deficit is the excess of projected expenditure over revenue for the first quarter of 2021 ,” he said.

Supporting the motion, Minority Leader Mr. Haruna Iddrisu formulated that the Minister of Finance should have shared with Ghanaians the impact of Covid-19 on economic performance, revenue mobilization, employment and livelihoods. expenses. He said the minister had indicated that the total public debt was 69.7% of GDP, which was almost at the 70% debt distress threshold. He said the IMF pegged Ghana's debt at 76.4% contrary to the data provided by the Finance Minister to Parliament and therefore requested the Minister to clearly explain the country's debt situation.

Reacting, Majority Leader Osei Kyei-Mensah-Bonsu dismissed claims by the Minority Leader that the finance minister had not told Ghanaians what the true state of the economy was. He said that the previous administration had borrowed, in eight years, about 49 billion dollars (27,342 billion FCFA) compared to the current government which had added about 21 billion GHC (2,011 billion FCFA).