Gov’t Reducing Public Expenditure – Report

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Source: Ghana | Myjoyonline.com

Government appears to making some progress in reducing its rising expenditure.

This revelation is contained in the latest fiscal data report covering government’s operations from January to November in 2015 .

The report gives a detailed breakdown of government’s spending patterns from January to November last year.

The report reveals that government managed to spend a little below the amount that it had targeted.

For instance in October 2015, it spent just about 3 billion Ghana cedis as against a target of 3.3 billion Ghana cedis.

From the data it is clear that savings made by government when it comes to compensation for public sector workers may have contributed to this success.

However when it comes to monies set aside to honour interest on loans, government as at November 2015, has paid a little over 8 billon Ghana cedis.
For some analysts there are still some questions.

For instance has government achieved this just because it is delaying some payments? Or is it because of the IMF program, which is putting a lot of pressure government to spend within approved budgets?

On the revenue side government made significant progress as the state continues to raise more than what it target.

However a comparison between revenue raised and expenditure reveals government has spent 5 billion Ghana cedis more than the about 28 billion Ghana cedis it realized in taxes and grants.

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