Government has proposed to use GH¢85.9 billion as Total Expenditure for the 2020 fiscal year, which is 21.6 per cent of Gross Domestic Product (GDP), including arrears payment, Mr Ken Ofori-Atta, the Finance Minister, said on Tuesday.
Delivering the 2020 Budget Statement and Economic Policy for the Government in Parliament, Mr Ofori-Atta said the Government had projected to raise GH¢67.1 billion, which is up from the projected outrun for 2019 of GH¢54.6 billion.
He said wages and salaries for next year are projected at GH¢22.9 billion and constituted 26.7 per cent of the Total Expenditure, including arrears clearance, adding that goods and services are also projected at GH¢8.3 billion, which is 2.1 per cent of GDP and 9.7 per cent of the Total Expenditure (including arrears clearance).
The Minister said interest payments on public debt was projected at GH¢21.7 billion, which was 5.4 per cent of GDP. Domestic Revenue to be raised in 2020 is estimated at GH¢65.8 billion, representing an annual growth of 22.5 per cent.
Grants disbursement from Development Partners is estimated at GH¢1.2 billion, which is 0.3 per cent of GDP and a nominal growth of 48.8 per cent. Mr Ofori-Atta said the Government would continue with the implementation of the Earmarked Funds Capping and Realignment Act to reduce budget rigidities and create fiscal space to fund growth-enhancing expenditures.
He said transfers to Statutory Funds and all other earmarked funds were estimated at GH¢15.6 billion in 2020, representing 19.6 per cent growth over the projected outturn for 2019.
Capital Expenditure is projected at GH¢9.3 billion, which is 2.3 per cent of GDP, representing 53.5 per cent increase over the 2019 projected outturn.
Of this amount, the Minister said Domestic Financed Capital Expenditure is estimated at GH¢3.8 billion (0.9 per cent of GDP), while Foreign Financed Capital Expenditure is estimated at GH¢5.5 billion (1.4 per cent of GDP), to be funded by a combination of Project Grants and Loans.
He said based on the estimates for Total Revenue and & Grants and Total Expenditure, the 2020 fiscal operations will result in a cash deficit of GH¢18.9 billion, equivalent to 4.7 percent of GDP.
Financing of the Fiscal Deficit from domestic sources would amount to GH¢8.3 billion (2.0 per cent of GDP), while foreign financing of the deficit would amount to GH¢10.6 billion (2.7 per cent of GDP).
Mr Ofori-Atta said the foreign financing of the deficit would also include a planned international capital market programme to raise up to three billion dollars, of which 2.0 billion dollars would support the implementation of the 2020 Budget and for domestic liability management.