Govt targets 2.8% growth for 2024
-By spending GH¢226.7bn to accrue GH¢61.9bn deficit
By Elvis DARKO, Accra
Finance Minister Ken Ofori-Atta, has presented the government’s fiscal plan for the year 2024 to Parliament, outlining a comprehensive strategy to propel the nation’s economic growth.
He announced economic targets for the 2024 fiscal year, emphasizing a macroeconomic goal to achieve a 2.8% growth in Gross Domestic Product (GDP).
The targets were presented as part of the 2024 Budget Statement and Economic Policy, aligning with the objectives and policy priorities outlined in the 3-year IMF-Supported Post-COVID-19 –Programme for Economic Growth (PC-PEG).
In his presentation, Minister Ofori-Atta outlined several key targets, including a Non-Oil Real GDP growth goal of at least 2.1%.
He said the government also aims for an End-Period inflation rate of 15%, a primary balance on commitment basis surplus of 0.5% of GDP, and Gross International Reserves to cover not less than three months of imports.
“The Primary Balance on commitment basis is the fiscal anchor we are using to assess our fiscal effort,” explained Ofori-Atta, highlighting the importance of maintaining fiscal discipline.
He said the economic projections for 2024 involve a Total Revenue and Grants target of GH¢176.4 billion, equivalent to 16.8% of GDP.
This is supported by permanent revenue measures, accounting for 0.9% of GDP.
On the expenditure side, the government estimates a Total Expenditure on commitment basis at GH¢226.7 billion, representing 21.6% of GDP.
Ofori-Atta underscored a significant reduction of 6.1 percentage points in total expenditures on a commitment basis compared to 2023.
This reduction is attributed to fiscal consolidation efforts, with a 4.9 percentage point adjustment in revenue and a four percentage point adjustment in primary expenditure.
The Finance Minister emphasized the positive impact of ongoing external debt operations on potential interest rate savings, contributing to the sustainability of public finances.
“Based on the estimates for total revenue & grants and total expenditure, including arrears clearance, the overall Budget balance to be financed is a fiscal deficit of GH¢61.9 billion, equivalent to 5.9% of GDP,” Ofori-Atta stated.
“Additionally, he projected a corresponding primary balance deficit of GH¢5.9 billion, equivalent to 0.6% of GDP.
The medium-term outlook includes a commitment to further improving the primary balance, aiming for a surplus of 1.5% of GDP from 2025 onwards.
In a significant economic projection, Ofori-Atta announced that Ghana’s economy is expected to surpass GH¢1 trillion in 2024, marking a historic milestone.
He credited this remarkable growth to President Akufo-Addo’s policies, noting that the country’s economic value is projected to escalate from GH¢219.5 billion in 2016 to over GH¢1 trillion in the President’s final year in office.
“The 2024 Budget is even more significant because we will cross the GH¢1 trillion Gross Domestic Product (GDP) mark for the first time in our economic history,” Ofori-Atta emphasized in his address to Parliament.
He pledged to protect the foundation for sustained economic expansion, ensuring enabling factors such as reliable energy supply, stable currency, lower inflation, lower interest rates, access to private sector credit, infrastructure provision, food security, national security, and market linkages are in place.
Government’s 2024 economic targets reflect the government’s dedication to navigating post-COVID challenges and fostering sustainable economic growth, in line with international cooperation and fiscal responsibility.
