Finance Minister Dr. Mohammed Amin Adam has provided an analysis of Ghana's fiscal performance for 2023 and preliminary figures for the first half of 2024. His 2024 mid-year budget statement presentation shed light on the country's budget deficits, revenue generation, and expenditure management.2023 Fiscal PerformanceFor 2023, the revised target for the overall budget deficit on a commitment basis was set at 5.

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7% of GDP, with a primary deficit target of 0.5% of GDP. On a cash basis, the revised target for the overall deficit was 6.4% of GDP. Here are the key figures:Overall Budget Deficit (Commitment Basis): The actual deficit stood at GH¢31.5 billion, which is 3.7% of GDP. This was significantly lower than the target deficit of GH¢49.0 billion (5.7% of GDP).Primary Balance (Commitment Basis): There was a deficit of GH¢2.2 billion (0.

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3% of GDP), marking an improvement over the target deficit of GH¢4.1 billion (0.5% of GDP) and a notable decrease from the 4.3% of GDP deficit recorded in 2022.Overall Budget Balance (Cash Basis): The deficit was GH¢28.0 billion (3.3% of GDP), substantially lower than the target deficit of GH¢55.0 billion (6.4% of GDP) and a decrease from the 10.6% of GDP deficit seen in 2022.Primary Balance (Cash Basis): A surplus of GH¢1.4 billion (0.

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2% of GDP) was recorded, a significant improvement compared to the target deficit of GH¢10.1 billion (1.2% of GDP) and the 3.2% of GDP deficit in 2022.2024 Fiscal OutlookFor the first half of 2024, the fiscal operations showed the following results:Overall Budget Deficit (Commitment Basis): The deficit was GH¢21.3 billion. This figure aligns closely with the target deficit of GH¢21.4 billion.

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Primary Balance (Commitment Basis): A deficit of GH¢2.3 billion (0.2% of GDP) was recorded, slightly better than the target deficit of GH¢2.4 billion (0.2% of GDP).Overall Cash Budget Deficit: The deficit stood at GH¢36.1 billion (3.4% of GDP), slightly higher than the target deficit of GH¢35.2 billion (3.3% of GDP).Primary Balance (Cash Basis): A deficit of GH¢17.1 billion (1.

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6% of GDP) was observed, compared to the target deficit of GH¢8.8 billion (0.8% of GDP).In terms of revenue and expenditure:Total Revenue and Grants (First Half of 2024): GH¢74.7 billion was collected, falling 1.9% short of the target of GH¢76.1 billion. However, this represents a nominal year-on-year growth of 24.6% and accounts for 42.3% of the budget's total revenue for the year.

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The revenue performance was bolstered by strong non-oil tax and non-oil non-tax revenues, despite shortfalls in oil receipts.Total Expenditures (Commitment Basis): Expenditures amounted to GH¢95.9 billion, below the budget target of GH¢104.8 billion.

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