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Ghana Budget Deficit 7.3% of GDP to August
 
Posted on: 03-Oct-2013        
 
 
 
Ghana’s budget deficit stood at 7.3 percent of gross domestic product in the first eight months of the year, and the country is on track to meet its full-year target, Finance Minister Seth Terkper told reporters.

The shortfall compares with targets of 6.6 percent of GDP for the period to August, and 9 percent for the year. Spending ahead of December elections spurred the deficit to 12.1 percent in 2012.

The government cut expenditure on goods and services to 463 million cedis ($213 million) in the year to August, while capital expenditure has been lowered to 2.7 billion cedis compared with a target of 3.2 billion, Terkper said in Accra. A reduction in fuel and utility subsidies is also supporting fiscal consolidation, he said.

Oil revenue reached $1.2 billion through August, compared with a target of $788 million, according to Terkper. Tax revenue during the period fell 14.5 percent below a budget target of 10.4 billion cedis, he said.

The currency of West Africa’s second biggest economy lost 0.2 percent to 2.1800 per dollar at 3:50: p.m. in Accra. It has weakened by more than 14 percent this year.