Parliament has approved a total of GH¢68,134,674,527 as Expenditure in Advance of Appropriation to meet expenditure on public services for the first quarter of 2025.
The amount is what the government will require from the Consolidated Fund to meet these expenditures from January to March 2025 until the 2025 annual estimates are considered and approved by Parliament.
Out of the approved sum:
GH¢16.46 billion will be allocated to employee compensation.
GH¢3.12 billion is earmarked for goods and services.
GH¢20.69 billion will go towards interest payments.
GH¢45.50 million is set aside for subsidies.
GH¢9.19 billion is designated for grants to other government units.
GH¢234.70 million will cover social benefits.
GH¢9.46 billion is for other expenditures.
GH¢5.29 billion is for capital expenditure.
GH¢2.34 billion will be used for arrears clearance.
GH¢1.28 billion is for amortisation.
Out of the amount, GH¢16.46 billion will be used for compensation of employees, GH¢3.12 billion for goods and services, GH¢20.69 billion for interest payments, and GH¢45.50 million for subsidies. The rest includes GH¢9.19 billion for grants to other government units, GH¢234.70 million for social benefits, GH¢9.46 billion for other expenditures, GH¢5.29 billion for capital expenditure, GH¢2.34 billion for arrears clearance, and GH¢1.28 billion for amortisation.
The Expenditure in Advance of Appropriation was laid before the House on Thursday, January 2, 2025, and subsequently referred to the Joint Committee on Budget and Finance for consideration and report.
Prior to the referral by the Speaker, the Minister for Finance, Dr Mohammed Amin Adam, moved the motion for the House to consider the mini-budget on the floor.
Per the report submitted by the Chairman of the Budget Committee, Thomas Apem Nyarko, the committee noted that the government had made available GH¢20.69 billion to make payments for the energy sector levy account and also to settle some payments to independent power producers.
“Secondly, liabilities that will fall due have been catered for with an amount of GH¢1.28 billion,” the report said.
The report also indicated that total revenue and grants for the first quarter were projected to amount to GH¢42,543,337,219, equivalent to 3.5 percent of GDP.
“This is made up of an amount of GH¢41,874,679,344 being domestic revenue and GH¢668,657,875 being grants,” it stated.
Out of the amount of GH¢41,874,679,344, total revenue for the period is expected to amount to GH¢35,822,933,519, non-tax revenue is expected to reach GH¢4,764,883,797, while social security contributions and other revenue are expected to amount to GH¢247,474,555 and GH¢1,039,387,473, respectively.
Tax refunds for the period are expected to amount to GH¢2,371,461,744, the report added.
Revenue Projections
The committee’s report projected total revenue and grants for the first quarter to amount to GH¢42,543,337,219, representing 3.5% of GDP.
Domestic revenue is estimated at GH¢41,874,679,344.
Grants are expected to contribute GH¢668,657,875.
Of the domestic revenue:
– GH¢35,822,933,519 is expected from total tax revenue.
– GH¢4,764,883,797 is anticipated from non-tax revenue.
– Social security contributions and other revenue are estimated at GH¢247,474,555 and GH¢1,039,387,473, respectively.
– Tax refunds for the period are projected at GH¢2,371,461,744.
