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General news for Thursday, October 29, 2020
Source: www.ghanaweb.com
2020-10-29
Finance Minister Ken Ofori-Atta
Finance Minister Ken Ofori-Atta has asked Parliament to approve GH ¢ 27.4 billion to be spent between January and March 2021.
The Finance Minister presented the statement to cover only three months of 2021 because 2020 is an election year, with the possibility of a change of government, so the budget for the following year should be limited to the first quarter only.
This is to avoid potential spending problems in the event of a change of government.
“Mr. President, we will need an amount of ¢ 27.4 billion GH to continue with government services until the expiration of three months from the beginning of fiscal year 2021,” he told Parliament on Wednesday, October 28, 2020.
Ken Ofori-Atta explained that the total amount will cover government operations, such as:
1. Employee compensation – GH ¢ 7,708,960,148
2 Goods and Services – GH ¢ 1,595,571,683
3 Interest payments – GH ¢ 7,002,221,941
4 Grants – GH ¢ 259,087,194
5 Donations to other government units – GH ¢ 4,340,216,517
6 Social benefits – GH ¢ 41,271,000
7 Other expenses – GH ¢ 813,610,025
8 Capital expenditures – GH ¢ 1,903,658,408
– Total GH ¢ 23,664,596,915
9 Settlement of Arrears – GH ¢ 350,000,000
10 Amortization – GH ¢ 3,419,583,605
– Appropriation – GH ¢ 27,434,180,520
“For the purposes of 2021 spending prior to appropriation, we have projected total revenue and grants for the first quarter of 2021 at GH ¢ 13.3 billion, while total spending, including arrears settlement, is projected at GH ¢ 24.0 billion. This results in a projected fiscal deficit of GH ¢ 10.7 billion for the period, ”he said.
He also revealed that to support the 2021 budget and the management of liabilities, his Ministry plans to obtain funds from the international capital market.
According to the minister, the international market fund supply will include the issuance of sovereign bonds for $ 3 billion, with the option of increasing it to $ 5 billion, if market conditions are favorable.
He said that of this amount, $ 1.5 billion will be used to support the 2021 budget and $ 3.5 billion for responsibility management.
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