The 2022 Auditor-General‘s report has revealed that the government spent more money on paying salaries and subsidies to its employees and institutions in 2022 than it had planned.
The report stated that the government had budgeted GH¢38,809 million for salaries and GH¢684 million for subsidies in 2022, but ended up spending GH¢44,333 million and GH¢927.25 million respectively.
This means that the government overspent by GH¢5,524 million on salaries and GH¢243 million on subsidies, representing 14.23 percent and 35.53 percent of the budgeted amounts respectively.
The report explained that salaries are the payments made to public servants for their work, while subsidies are the financial support given by the government to some institutions or sectors to reduce their costs or prices.
The report did not specify which institutions or sectors received the subsidies, but they could include education, health, agriculture, energy, transport, or others.
The report also showed that the government spent less money on other items such as goods and services, interest payments, other expenses and social benefits in 2022 than it had planned.
The report stated that the government had budgeted GH¢121,792 million for these items in 2022, but ended up spending GH¢105,906 million. This means that the government underspent by GH¢15,886 million on these items, representing 13.04 percent of the budgeted amount.
The report attributed the decrease in spending on these items to various factors such as improved debt management, enhanced internal controls, reduced wastage and corruption, and better allocation of resources. The report also noted that some of these items increased in actual terms compared to 2021, but they were still lower than the budgeted amounts for 2022.
The report commended the government for its efforts to control its expenditure and achieve fiscal consolidation in 2022. Fiscal consolidation is the process of reducing the government’s budget deficit and debt levels. The report also urged the government to implement its recommendations to ensure fiscal discipline and accountability.
Report of the Auditor-Gener… by The Independent Ghana