When a budget is approved and becomes an Appropriation Act, the budgetary agencies are supposed to execute the budget as approved.
The minister has told the nation that when they were approving the budget they anticipated a deficit of D198 million but now the deficit is D724 million. This budget deficit must be addressed either by budgetary cuts, an increase in borrowing or pursuit of grants.
The minister has said that the revenue collected from tax and non-tax sources in the first half of the year amounts to 13.78 billion dalasi but the expenditure for the corresponding period is 14.51 billion dalasi. According to him, personnel emoluments is 4.74 billion dalasi equivalent to 34 percent of income or 33 percent of expenditure.
This shows the challenges that the country faces in providing books and other learning materials for schools, drugs for hospitals and other services for vulnerable groups.
Foroyaa will examine the drivers for government expenditure and the challenges of providing adequate services to improve agricultural production or provide for health and education. A mid-term review of budget execution is a critical instrument that enables government to know whether it has made the right decision during its budgetary preparation process that gave rise to its budgetary proposals for execution. It should give detailed information to be able to track where government revenue is derived and on what it is expended. This provides room to discover gaps and know how to propose realistic budgets or seek ways to enhance revenue generation.
