Local news

Gov’t to spend GH¢119.62bn on compensation and interest payments in 2024

The government will spend about GH¢119.621 billion on Wages and Salaries as well as Interest Payments in 2024.

According to the 2024 Citizens Budget by the Finance Ministry, this will represent 52.7% of the expected total expenditure of about GH¢226.68 billion.

The biggest is Compensation which is estimated at GH¢63.68 billion, whilst Interest Payments (GH¢55.93 billion) follows suit. The interest payments will be spent on domestic loans.

About GH¢39.58 billion Grants to other Government Establishments is the third largest expenditure for this year.

It is followed by Capital Expenditure of GH¢28.72 billion. Other expenditures constitute GH¢27.69 billion, whilst Goods and Services make up GH¢11.06 billion.

The Total Expenditure for this year constitutes 21.6% of Gross Domestic Product (GDP).

Primary Expenditure which is expenditure less interest payments is projected at about GH¢170.7 billion, approximately 16.2% of GDP.

Meanwhile, based on the estimates for Total Revenue and Grants and Total Expenditure (commitment), the projected overall balance on a commitment basis is a deficit of GH¢50.1 billion.

The corresponding Primary balance on a commitment basis is however a surplus of GH¢5.7 billion, equivalent to 0.5% of GDP.

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