Parliament approves GH¢68.1 billion for first quarter 2025 expenditures

Parliament has approved an expenditure of GH¢68,134,674,527 to sustain public services for the first quarter of 2025. This allocation, sourced from the Consolidated Fund, will finance government operations from January to March 2025 until Parliament finalises the annual estimates for the year.

The approved expenditure includes GH¢16.46 billion for employee compensation, GH¢3.12 billion for goods and services, and GH¢20.69 billion earmarked for interest payments. Additionally, GH¢45.50 million is allocated for subsidies, while GH¢9.19 billion will support grants to other government units. Social benefits will receive GH¢234.70 million, and GH¢9.46 billion is set aside for other operational expenditures. Capital expenditure stands at GH¢5.29 billion, arrears clearance is allocated GH¢2.34 billion, and amortisation will require GH¢1.28 billion.

The financial plan, laid before Parliament on January 2, 2025, was referred to the Joint Committee on Budget and Finance for review. Following this, Finance Minister Dr. Mohammed Amin Adam moved a motion urging the House to consider the mini-budget.

Chairman of the Budget Committee, Thomas Apem Nyarko, presented the report highlighting GH¢20.69 billion allocated to service the energy sector levy account and payments to independent power producers. Additionally, GH¢1.28 billion is set aside to cover impending liabilities.

Revenue projections for the first quarter estimate GH¢42,543,337,219 in total revenue and grants, accounting for 3.5% of GDP. This comprises GH¢41,874,679,344 from domestic revenue and GH¢668,657,875 in grants.

Tax revenue is forecasted at GH¢35.82 billion, non-tax revenue at GH¢4.76 billion, social security contributions at GH¢247.47 million, and other revenues at GH¢1.04 billion. Tax refunds during this period are projected to reach GH¢2.37 billion