Estimated total revenue for 2024 is GH¢176.4 billion, according to the government’s fiscal plan presented to Parliament on Wednesday by Finance Minister Ken Ofori-Atta.

Ofori-Atta stated that the government had budgeted GH¢226.7 billion, or 21.6 percent of GDP, for all of its anticipated expenditures in the 2024 Budget Statement and Economic Policy.

He continued to discuss the comprehensive fiscal strategy, pointing out that, in comparison to the 2022 downturn, there has been a significant decrease in total spending, totaling 6.1 percentage points of GDP. He clarified that this decrease is the outcome of several fiscal consolidation initiatives, including adjustments of 4.0 percentage points in primary expenditure and 4.9 percentage points in revenue.

Ofori-Atta also emphasized the ongoing external debt operation’s potential interest rate savings, highlighting its beneficial effects on the sustainability of public finance.

“Mr Speaker, Total Revenue and Grants are projected at GH¢176.4 billion (16.8 percent of GDP) and is underpinned by permanent revenue measures largely Tax revenue measures amounting to 0.9 percent of GDP.

“Total Expenditure (commitment) is projected at GH¢226.7 billion (21.6 per cent of GDP). This projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022.

“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. Mr. Speaker, based on the estimates for Total Revenue & Grants and Total Expenditure (including arrears clearance), the overall Budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9 percent of GDP. The corresponding Primary balance is a deficit of GH¢5.9 billion, equivalent to 0.6 percent of GDP.”