Claim: The NDC’s economic spokesperson, Isaac Adongo, has claimed that Ghana has a revenue budget of about 176 billion cedis and a deficit of about 50 billion cedis.
Verdict: Isaac Adongo’s claims regarding Ghana’s revenue budget and budget deficit are incorrect. The figures from the 2024 Mid-Year Budget presented by the Ministry of Finance show a budget deficit of GHS36.1 billion, not 50 billion cedis.
Full Text
Isaac Adongo appeared on Joy News’ PM Express with Evan Mensah on August 26, 2024, representing the National Democratic Congress (NDC) as their Spokesperson on the economy. During the interview, Adongo sought to explain and justify the NDC’s position as the most capable political party to govern the country.
In his delivery, he accused the current government of mismanaging the economy, claiming it has recorded a budget deficit of GHS50 billion while maintaining a revenue budget of GHS172 billion.
He stated, “We currently have a revenue budget of about 172 billion cedis and a deficit of about 50 billion cedis. We are not going to do such things.” This claim can be found between 20:19 and 20:35 minutes of the show, which was published on YouTube and has since accumulated over 8,000 views.
Verification
The Ministry of Finance is the only institution responsible for managing and overseeing the country’s economic and financial policies. Therefore, DUBAWA reviewed the most recent data from the Ministry, specifically the 2024 Mid-Year Budget presented by Finance Minister Dr Amin Adams. This budget provides financial data for the first quarter of 2024, which should correspond with the figures cited by Isaac Adongo, the NDC Spokesperson on the economy.
A budget deficit occurs when the government doesn’t have enough money to pay for everything it needs, leading it to borrow or find other ways to make up for the difference. A revenue budget refers to the part of a government’s budget that deals with its sources of income.
It includes all the money the government expects to collect during a specific period (usually a fiscal year) from various sources, such as taxes, fees, fines, and other forms of income.
As a result, Mr Adongo suggests that despite the substantial revenue the government is generating, it still ends up with a large deficit, which the speaker believes results from poor financial management.
Upon investigation, DUBAWA found that the actual budget deficit is GH¢36.1 billion, significantly lower than the GH¢50 billion cited by Mr Adongo. Specifically, the budget states: “Mr Speaker, the overall cash budget deficit was 36.1 billion cedis (3.4% of GDP), compared with the deficit target of 35.2 billion cedis (3.3% of GDP).” This information is detailed on page 11 of the document.
Furthermore, the total revenue is reported as GH¢177 billion, and the government expects to receive this amount by the end of 2024.
“Speaker, Total Revenue, and Grants have been revised upward by 0.5 per cent to GH¢177.2 billion (17.4% of GDP) in 2024, from the 2024 Budget target of GH¢176.4 billion (16.8% of GDP),” the document indicated.
This can also be captured on page 12 of the 2024 Mid-Year Budget.
Conclusion
Isaac Adongo’s claims regarding Ghana’s revenue budget and budget deficit are incorrect. The figures from the 2024 Mid-Year Budget presented by the Ministry of Finance show a budget deficit of GHS36.1 billion, not 50 billion cedis.
Source: ghana.dubawa.org