Government marginally revised its overall Gross Domestic Product (GDP) target from 5.0 as originally projected in the 2021 budget to 5.1 per cent at the end of the year. Non-oil GDP growth has similarly been projected to grow from 6.7 per cent to 7.0 per cent.
In the next few years, specifically 2022-2025, real GDP growth is expected grow at an average rate of 5.4 per cent as a result of a ramp up in the government’s flagship programmes, including the implementation of the Ghana CARES (Obaatan Pa) Programme, benefits from the AfCFTA Programme, an enhanced digitalisation drive, an aggressive FDI push, and establishing Ghana as a Regional Hub for trade.
In his mid-year budget review address to Parliament, the Minister of Finance explained that domestic developments on the fiscal front for the first half of 2021 largely informed the revision to the 2021 fiscal framework.
For example, total revenue and grants have been revised to GH¢72,477 million (16.5per cent of GDP) in 2021, representing a marginal 0.03 per cent increase over the original 2021 budget target of GH¢72,452 million (16.7per cent of GDP), and 31.5 per cent higher than the 2020 outturn of GH¢55,128 million (14.4per cent of GDP). On the other hand, total expenditure (including payments for the clearance of arrears) is projected to remain unchanged from the original budget projection of GH¢113,750 million (25.9per cent of GDP), about 13.7 percent higher than the 2020 outturn of GH¢100,026 million.
It is expected these adjustments will reduce the nation’s fiscal deficit (on cash basis) and augment the government’s efforts at maintaining fiscal discipline and growing the economy.