Ghana has raised its spending budget for 2014 fiscal year to $15.5 billion (GH?34.9 billion) which is equivalent to 33.1% of GDP, the government announced.

The estimated expenditure for the year represents 17.7% rise over the projected outturn for 2013, according to the country?s 2014 Budget Statement presented in Parliament November 19, 2013 in Accra.

Finance Minster Seth Terkper told Ghanaian lawmakers that the spending will also cover arrears and outstanding commitments.

??Of this amount, GH?2,816.2 million, equivalent to 2.7% of GDP and 8.1% of total expenditure will be used for the clearance of arrears and outstanding commitments,? he said.

Meanwhile, the government expects raise GH?26 billion, equivalent to 24.6% of GDP, in revenue and grants in 2014.

?Based on the revenue and expenditure estimates, the 2014 budget will result in an overall budget deficit of GH?8.9 billion, equivalent to 8.5% of GDP,? Terkper noted.

According to the Finance Minister, financing of the budget deficit will be from both domestic and foreign sources.

?Net Domestic Financing is estimated at GH?4.1 billion, equivalent to 3.9% of GDP, and financing from foreign sources are estimated at GH?4.9 billion, equivalent to 4.7% of GDP,? he added.

By Ekow Quandzie/ghanabusinessnews.com

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