20% quarterly expenditure ceiling will enhance credibility of 2022 budget – Economist
Economist Courage Martey has stated that the government’s move to reduce the quarterly expenditure ceilings across the board for all covered entities benefiting from the 2022 Budget by 20% beginning 2022 quarter one, will enhance the credibility of the 2022 budget.
The Minister of Finance, Ken Ofori-Atta, earlier this month announced that, in a prudent fiscal consolidation move, this forms part of efforts to strengthen expenditure management in 2022 and beyond.
In an interview with Citi Business News, Courage Martey however, urged the government to back its words with action.
Following the pandemic’s impact on the economy, the latest bold step adds to the government’s announced fiscal consolidation strategies, which include a focus on more internal revenue generation.
The government’s projected expenditure for 2022, which has already been approved by Parliament, is GH¢135.6 billion, jumping from the GHS 107.9 billion, which was allocated for the 2021 financial year.
The figure represents a 25.7% increase from the 2021 figure.
A look at the key components of expenditure in the Government Budget which includes the Compensation of Employees, Use of Goods and Services and Grants to Other Government Units, show that each has a projected expenditure value of GHS35.8 billion, GHS9.1 billion and GH¢26.8 billion, respectively.
Compensation of employees, Use of Goods and Services and Grants and other government units together also constituted 26 percent, 6.7 percent and 19.8 percent of total expenditure for the year 2022.
Source: Ghana Business
