Revenue flows in the first two months of 2024 lower than targets, clearance of energy sector debts increased expenditure – BoG

The Bank of Ghana (BoG) has disclosed that targets set for revenue mobilisation for the first two months of the year were not met.

In a press release after the 117th Monetary Policy Committee (MPC) meetings which took place last week, BoG said although the flows are lower vis-a-vis targets, expenditures have been fast-paced driven largely by clearance of arrears in the energy sector.

According to the Central Bank, revenue flows will pick up this month.

“Fiscal policy implementation so far has been broadly consistent with targets under the IMF ECF-supported programme. Although the primary fiscal balance 7 PUBLIC target for 2023 was attained, the fiscal assessment is made on commitment basis. This will require vigilance to ensure that commitment control is effective in 2024.

“Revenue flows in the first two months of the year are lower vis-a-vis targets, and expenditures have been fast-paced driven largely by clearance of arrears in the energy sector. It is expected that revenue flows will pick up in March as the deadline for filing tax returns in April approaches,” the Bank of Ghana said in a press release on Monday, March 25.

Meanwhile, the Bank of Ghana has maintained the monetary policy rate at 29%.

In its release today, it said the decision to maintain monetary policy rate at 29% is because overall, risks to inflation are slightly on the upside.

“After decelerating sharply in 2023, the pace of disinflation has slowed in the first two months of the year. Although inflation rose slightly in January 2024 and edged down in February, the latest inflation forecast suggests a slightly elevated profile from the possible upward revision in transport fares, adjustment in utility tariffs, higher ex-pump prices, and some pass-through of exchange rate depreciation.

“Overall, risks to inflation are slightly on the upside and will require close monitoring. Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29.0 percent,” the Bank of Ghana said in a press release on Monday, March 25.