cediGhana?s budget deficit reached 4.5% of GDP as the country?s total debt hit GH?39.1 billion at the end of the first half-year of 2013, according to the Bank of Ghana (BoG).

The central bank?s preliminary data for the first half-year show that the deficit in monetary terms was GH?4 billion.

?It was was within target for the period,? BoG Governor Dr Kofi Wampah said July 31, 2013 at a press conference.

According to the BoG, the deficit was ?financed mainly from domestic sources, resulting in a Net Domestic Financing (NDF) of GH?3 billion, lower than the budget target of GH?3.2 billion? adding that foreign financing amounted to GH?1billion.

On Ghana?s public debt, the central bank indicated that it increased to GH?39.1 billion which was 43.9% of GDP as at the end of June 2013, from GH?35.1 billion in December 2012.

This was because the government spent more than the revenue it accrued during the half-year. The government?s total revenue and grants during the 2013 first-half period was GH?9.5 billion against the GH?10.6 billion target.

While total expenditures for the first half amounted to GH?13.5 billion, compared to the target of GH?14.6 billion.

Out of the total public debt stock, the BoG observed that the domestic component amounted to GH?20.9 billion while the external component stood at $9.3 billion.

By Ekow Quandzie

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