A Look into Ghana’s 2020 Budget Numbers

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

List of latest Ponzi schemes in Nigeria

These are the latest and past Ponzi scams and shady investment products that Nigerians are putting their monies into. What...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Earlier in the week, Ghanaian Finance Minister, Ken Ofori-Atta, on the authority of the President, Nana Akufo-Addo, presented Ghana’s 2020 Budget proposal, titled “Consolidating the Gains for Growth, Jobs & Prosperity for all” to the Parliament.

Built into the budget is a wider fiscal deficit of GHc18.8bn ($3.4bn), as total revenue (GHc67.1bn; $12.0bn) is estimated to come in lower than total expenditure (GHc85.9bn; $15.4bn) for 2020. According to the budget numbers, non-debt recurrent expenditures remained dominant; Wages & Salaries (30.9%), Interest payments (25.2%) while capital expenditure remained low at 10.8% of total budget spending. On the revenue side, tax is expected to account for 67.1% of total revenue, followed by revenue from oil (13.3%) and other non-tax revenue excluding oil (12.6%).

Additionally, the government plans to fund the deficits by borrowing from domestic (43.6%) and foreign (56.4%) sources. Notably, the finance minister highlighted the country’s plan to visit the international capital market to raise c. $3.0bn, of which $2.0bn will be used to support the implementation of the 2020 budget and the rest for domestic debt liability management.

In all, the deficit of GHc18.9bn is 4.7% of GDP and falls within the 5.0% limit set out in 2018’s Fiscal Responsibility Act. However, with the risk of underperforming revenues and election year overspending, this ratio could increase past the legally set cap.

- Advertisement -

Top African Stories

  • Zimbabwe to cut value-added tax to boost consumer demand: Zimbabwe plans to cut value-added tax (VAT) from January to stimulate consumer demand in an economy set to a contract this year after a drought and power shortages. Read more
  • Egypt issues dollar-denominated Eurobonds worth $2 billion: Egypt has issued dollar-denominated Eurobonds worth $2 billion in three tranches to cover part of its $5 billion 2019-2020 budget.  Read more
  • China-backed consortium wins $14 bln Guinea iron ore deal, pipping Australia’s Fortescue: A consortium representing Chinese, French and Singaporean interests won a $14 billion tender to develop part of Guinea’s Simandou iron ore project.  Read more
  • African Development Bank decides not to fund Kenya coal project: The African Development Bank (AfDB) will not fund a coalfired power plant project in Kenya and has no plans to finance new coal plants in future, senior AfDB officials told Reuters. Read more
  • Tullow Oil cuts oil output, cash forecast for 2019 as Ghana issues persist: Africa-focussed Tullow Oil cut its 2019 oil production and free cash flow forecast for the year because of ongoing problems at its Ghana fields, sending its shares 14% lower. Read more
  • Nigerian ‘unicorn’ Interswitch sells stake to Visa: Visa Inc will buy a significant minority stake in Nigerian payments platform Interswitch, creating “an instant acceptance network across Africa” that will help drive expansion. Read more
Read Also:  President Muhammadu Buhari Presents 2020 Appropriation Bill


- Advertisement -
A Look into Ghana's 2020 Budget NumbersA Look into Ghana's 2020 Budget Numbers

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

A Look into Ghana's 2020 Budget NumbersA Look into Ghana's 2020 Budget Numbers

Latest News

How Business Can Fight COVID-19 in the Poorest Communities

The COVID-19 crisis has triggered an unprecedented homegrown response in Africa. There has been an outpouring of corporate philanthropy...

Lagos Business School emerges as the only African business school on 2020 Economist ranking

Lagos Business School (LBS) has become the only business school in Africa to be featured on The Economist 2020 Executive MBA Ranking. The Economist’s Executive...

Nigeria H2’20 Outlook – The viral shock

The year 2020 has been a struggle. A global pandemic is in full swing and is poised to upend lives and livelihoods, obliterating any...

BUA Group to set up 3 million Metric-ton Cement Company, 50MW Power Plant in Adamawa

The Bua Group announced that it is set to establish a three million metric tonnes cement plant and 50 megawatts power plant in Guyuk...

Economic Slowdown – Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020)

Nigerian manufacturers are mostly anxious about two things today: How long will the pandemic lockdown continue before demand for my products recover? (X) - Unknown When will...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -A Look into Ghana's 2020 Budget NumbersA Look into Ghana's 2020 Budget Numbers