Parliament has granted approval for an Expenditure in Advance of Appropriation totalling GH¢68,134,674,527 to fund government operations during the first quarter of 2025.
This approval allows the government to meet essential expenditures from January to March 2025, ahead of the annual budget estimates’ review and approval by Parliament.
The approved expenditure will be sourced from the Consolidated Fund and allocated across critical public services. The breakdown of the approved funds is as follows:
Key Allocations
- Compensation of Employees: GH¢16.46 billion will be used to pay public sector salaries and other related benefits.
- Goods and Services: GH¢3.12 billion is earmarked for the procurement of goods and delivery of services.
- Interest Payments: GH¢20.69 billion will cover interest on government debt.
- Subsidies: GH¢45.50 million is set aside to finance subsidies in various sectors.
- Grants to Other Government Units: GH¢9.19 billion is allocated to support other government entities.
- Social Benefits: GH¢234.70 million will fund social interventions and benefits for vulnerable groups.
- Other Expenditures: GH¢9.46 billion will cover miscellaneous expenditures.
- Capital Expenditure: GH¢5.29 billion will be directed towards infrastructure and development projects.
- Arrears Clearance: GH¢2.34 billion is designated for settling outstanding obligations.
- Amortization: GH¢1.28 billion will be used to pay off existing debts.
Revenue Projections for Q1 2025
The committee’s report projected total revenue and grants for the first quarter of 2025 to reach GH¢42,543,337,219, representing 3.5% of GDP. The revenue breakdown is as follows:
- Domestic Revenue: GH¢41,874,679,344
- Tax Revenue: GH¢35,822,933,519
- Non-Tax Revenue: GH¢4,764,883,797
- Social Security Contributions: GH¢247,474,555
- Other Revenue: GH¢1,039,387,473
- Grants: GH¢668,657,875
From the domestic revenue, tax refunds for the period are expected to amount to GH¢2,371,461,744.
Strategic Budgeting to Maintain Stability
The Expenditure in Advance of Appropriation ensures uninterrupted public services while the government prepares the full annual budget. By allocating significant portions of the budget to employee compensation, interest payments, and capital expenditure, the government aims to sustain economic stability and address critical liabilities in the energy sector.
Minister for Finance, Dr. Mohammed Amin Adam, presented the mini-budget to Parliament on Thursday, January 2, 2025 following weeks of jostling for it to be laid, especially after the NDC won the general election.
The Chairman of the Budget Committee, Thomas Apem Nyarko, presented the committee’s report, which stressed critical allocations to address key liabilities. The committee noted that the government had allocated GH¢20.69 billion to settle payments related to the Energy Sector Levy Account and independent power producers. Additionally, GH¢1.28 billion has been set aside for debt amortization.
