Business in Ghana

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Archive for November 6th, 2011

Political Debt, Are We Budgeting Enough?

Posted by Business in Ghana on November 6, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

This year our budget must center on whether we can raise sufficient revenue to cover our full expenditures and not rely on donor support to shore up our politically generated deficit gap.  In finance parlance, we must cut the deficit budgeting this time round and look to growth measures and increase taxes to meet our expenditures.  It means tackling the tax base confidently and that should include the informal sector.

In the 2011 budget we planned some bold measures to ensure growth and revenue mobilization and throughout the year Government has announced better than planned revenues.  It has not made, as much noise about the expenditure overruns and not all the Single Spine implementation is complete.  The big one, Teachers and second largest Health are yet to be included.

In the 2011 budget we estimated revenue of ghc10.6billion.  In August 2011 it was supplemented by another ghc1.4billion, making total expected budget revenue ghc12billion.  Expenditure increased from ghc12.6billion initially and supplementary was ghc900million.  Our overspend (budget gap) is ghc1.5billion, which we couch as infrastructure needs, but it really is not. Read the rest of this entry »

Posted in Financial Services, Sydney Casely-Hayford | Tagged: , , | 1 Comment »