• About
  • Advertise
  • Privacy Policy
  • Contact
Monday, August 4, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Interest Payment & Employee Compensation Higher Than Domestic Revenues By 9.3% In Q1 2022

June 14, 2022
Stephen M.Cby Stephen M.C
in Economy, One Top Story
0
Interest Payment & Employee Compensation Higher Than Domestic Revenues By 9.3% In Q1 2022

Government’s revenue mobilization efforts continue to face difficulties amid the mounting pressures from the expenditure side, despite its commitment to stick to the fiscal consolidation pledge.

The total domestic revenues mobilized in the first quarter of 2022 (Q1, 2022) was not even enough to cater for Just two expenditure components – Interest Payment and Employee Compensation.

According to data from the Bank of Ghana (BoG), these two expenditure components were 9.3% higher than the total revenues mobilized domestically in the first three months of the year.

RelatedPosts

Ghana’s GH₵525bn Financial Sector Faces Hidden Risk from Securities Industry

24-Hour Economy Gains Momentum: Deloitte Tips Ghana to Hit 2025 GDP Milestone

Global Recession Looms—Ghana Urged to Build Bond Buffer or Risk Economic Shock

During the review period, domestic revenue amounted to GH¢16,624.3 million (3.3% of GDP), below the target of GH¢19,183.6 million (3.8% of GDP), reflecting mixed performances of both tax and non-tax proceeds.

Meanwhile, employee compensation and interest payments together amounted to GH¢18,164.3 million in Q1, 2022.  This means that the domestic revenues raised during the quarter was GH¢1,540 million (9.3%) less than what the government required to meet its interest payment obligations as well as pay its employees.

The pace of revenue mobilization remained below target, as Total Revenue & Grants for the first three months of 2022 amounted to GH¢16,708.9 million (3.3% of GDP), lower than the target of GH¢19,338.8 million (3.9% of GDP).

This outturn represented a shortfall of 13.6 percent of the January to March 2022 target. However, it represented a year-on-year growth of 25.1 percent over the GH¢13,361.35 million recorded in the first quarter of 2021.

Total Expenditure Analyses

Total expenditures & arrears clearance for the first three months of 2022 amounted to GH¢26,953.3 million (5.4% of GDP), below the target of GH¢30,524.2 million (6.1% of GDP). This outturn represented a year-on-year growth of 16.1 percent even though 11.7 percent below the target.

Two expenditure components – Compensation of Employees and Interest Payments – accounted for 67.4% of Total expenditures & arrears clearance for the first three months of 2022.

Compensation of Employees (including wages and salaries, pensions & gratuities, and other wage related expenditure) was GH¢7,555.9 million, 15.7 percent lower than the target of GH¢8,960.3 million.

 In terms of fiscal flexibility, compensation of employees constituted 45.5 percent of domestic revenue mobilized at the end of the first three months of 2022, lower than the 54.2 percent recorded in the corresponding period of 2021, according to the Bank of Ghana.

Meanwhile, Total Interest Payments amounted to GH¢10,608.4 million over the review period, higher than the envisioned target of GH¢10,037.3 million.

“Domestic interest payments accounted for 82.7 percent of the total interest payments, while external interest payments constituted the remaining 17.3 percent. Total interest payments constituted 63.8 percent of domestic revenue, down from 64.6 percent recorded in the corresponding period of 2021”.

Bank of Ghana

Use of Goods and Services for the period under review amounted to GH¢163.5 million, lower than the expected target of GH¢1,842.4 million.

Grants to Other Government Units, made up of National Health Fund, Education Trust Fund (GET Fund), Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to GNPC and other earmarked funds, amounted to GH¢4,459.6 million, lower than the target of GH¢5,596.1 million. This represented a shortfall of 20.3 percent from the target, but recorded a year-on-year growth of 34.8 percent.

Also, ‘Other Expenditure’, made up of ESLA transfers, COVID-19 related expenditure, and other critical spending, for the first three months of 2022, amounted to GH¢2,225.3 million.

Capital expenditures for the period under review amounted to GH¢1,940.6 million (0.4% of GDP), lower than the programmed target of GH¢2,751.4 million (0.6% of GDP) by 29.5 percent. Notably, the outturn represented a year-on-year decline of 46.2 percent. Foreign-financed capital expenditure accounted for 98 percent of the total, with domestic financed capital expenditure making up the remaining 2 percent.

READ ALSO: Anti-LGBTQI Bill: This Is Not A Bill The Committee Should Be Divided Over- Agbotsey

Tags: Bank of GhanaCOVID-19Employee CompensationGDPInterest payment
Please login to join discussion
Previous Post

Anti-LGBTQI Bill: This Is Not A Bill The Committee Should Be Divided Over- Agbotsey

Next Post

Elon Musk to Hold First Meeting With Twitter Staff

[mc4wp_form id="1264"]

Related Posts

MultiChoice Ghana and pay-tv pricing
General News

Political Price Controls Threaten Ghana’s TV Market Amid Pay-TV Pricing Issues

August 4, 2025
Pakistan, Iran Ink Deals Across Various Sectors
Asia

Pakistan, Iran Ink Deals Across Various Sectors

August 3, 2025
President John Dramani Mahama, With Minister Bianca Odumegwu-Ojukwu, Ghana, Nigeria
General News

President Mahama Dispels Nigerian Deportation Fears After Viral Video

August 3, 2025
DSTV Pricing under scrutiny
General News

MultiChoice Grilled On DSTV Pricing 

August 3, 2025
Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 
Extractives/Energy

Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 

August 3, 2025
Ghana’s Minister for Communications, Digital Technology and Innovations, Hon. Samuel Nartey George
General News

Sam George Rejects DStv’s Proposal, Insists on Price Reduction

August 3, 2025
MultiChoice Ghana and pay-tv pricing
General News

Political Price Controls Threaten Ghana’s TV Market Amid Pay-TV Pricing Issues

by Lilian AhedorAugust 4, 2025
Pakistan, Iran Ink Deals Across Various Sectors
Asia

Pakistan, Iran Ink Deals Across Various Sectors

by Comfort AmpomaaAugust 3, 2025
President John Dramani Mahama, With Minister Bianca Odumegwu-Ojukwu, Ghana, Nigeria
General News

President Mahama Dispels Nigerian Deportation Fears After Viral Video

by Silas Kafui AssemAugust 3, 2025
DSTV Pricing under scrutiny
General News

MultiChoice Grilled On DSTV Pricing 

by Lilian AhedorAugust 3, 2025
Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 
Extractives/Energy

Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 

by Prince AgyapongAugust 3, 2025
Ghana’s Minister for Communications, Digital Technology and Innovations, Hon. Samuel Nartey George
General News

Sam George Rejects DStv’s Proposal, Insists on Price Reduction

by Evans Junior OwuAugust 3, 2025
MultiChoice Ghana and pay-tv pricing
Pakistan, Iran Ink Deals Across Various Sectors
President John Dramani Mahama, With Minister Bianca Odumegwu-Ojukwu, Ghana, Nigeria
DSTV Pricing under scrutiny
Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 
Ghana’s Minister for Communications, Digital Technology and Innovations, Hon. Samuel Nartey George
[/vc_row_inner]

Recent News

  • Political Price Controls Threaten Ghana’s TV Market Amid Pay-TV Pricing Issues
  • Pakistan, Iran Ink Deals Across Various Sectors
  • President Mahama Dispels Nigerian Deportation Fears After Viral Video
  • MultiChoice Grilled On DSTV Pricing 
  • Newmont Finalises $770M Sale of Akyem Mine to Zijin Mining 
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.