Dr Kwabena Duffuor - Finance Minister WITH JUST a little over one month to the end of the year, it has become certain that the government has missed a number of fiscal targets set in the budget statement and economy policy for 2009.
For instance, the Gross Domestic Growth (GDP) of 4.7 per cent for the year is below the targeted growth of 5.9 per cent, which is even lower than 7.3 per cent GDP for 2008; total revenue and grants amounted to GH¢4,518.6 million, 11.9 per cent below the budget target of GH¢5,129.9 million.
These figures were disclosed at a three-day workshop organized by the Canadian Parliamentary Centre in collaboration with Ghana Parliament, at Sogakope in the Volta Region, for Members of Parliament to review the budget and economic policy of the government for 2010.
It is projected that by the end of this year, total revenue and grants would be GH¢7,216.1 million, 3.5 per cent below the target estimate of GH¢7,474.2 million.
The shortfall, according to economic analysts, results from under performance in grants of GH¢84.2 million and domestic revenue shortfall of GH¢173.9 million.
Furthermore, revenue from petroleum taxes as at the end of September 2009 was GH¢216.7 million, 3.2 per cent lower than the budget estimate of GH¢320.1 million.
The low performance of petroleum taxes has been attributed mainly to the lower volumes of petroleum products lifted and the reduction of taxes on petroleum products in March this year, in the face of rising world crude oil prices and a fast depreciating Cedi at the beginning of the year.
As a result, petroleum taxes are projected at GH¢298.9 million, 31.5 per cent lower than budget estimate.
On statutory and discretionary payments, total statutory payments, which include interest payment, external debt payments and payments to statutory funds amounted to GH¢1,914 million, which was 5.8 per cent lower than the budget target for the end of September 2009.
The outturn, according financial analysts, indicates an 18.7 per cent increase over the outturn for the same period in 2008.
For the whole year, statutory payments are projected at GH¢3,230.1, compared to a budget estimate of GH¢3,156 million, and the higher than programmed outturn is said to be as a result of higher domestic interest payments due to higher domestic interest rates.
Additionally, total discretionary payments for the review period amounted to GH¢4,352.5 million, equivalent to 20.1 per cent of GDP.
Payments for wages and salaries up to the end of September 2009 amounted to GH¢1.726.7 million, equivalent to 8.0 per cent of GDP. The outturn is reported to be 5.9 per cent lower than the budget target of GH¢1,834.3 million.
Analysts say the outturn for wages and salaries is projected to be GH¢2,265.9 million by the end of the year, against the 2009 budget provision of GH¢2,291.4 million for the payment of wages and salaries.
From Awudu Mahama, Sogakope
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