Govt disburses GH₵30bn to key sectors in 6 months

The government has disbursed over GH₵30.535 billion to various sectors within the first six months of this year to support ongoing initiatives and clear outstanding payments.
This substantial allocation underscores the government’s commitment to enhancing public welfare and economic growth.

GH₵12bn paid to bondholders
The largest allocation, approximately GH₵12 billion, was directed towards coupon payments to bondholders under the Domestic Debt Exchange programme since February.
This move demonstrates the government’s dedication to the programme and its stakeholders.

GH₵10bn paid road sector
The second-highest payment, nearly GH₵10 billion, was invested in the road sector to enhance transportation infrastructure and spur economic growth.
This investment aims to improve connectivity and support economic activities across the country.

GH₵5.4bn paid to LEAP, NHIS, School Feeding
Additionally, GH₵5.4 billion was disbursed to support critical social programs, including the Livelihood Empowerment Against Poverty (LEAP) programme, the School Feeding programme, the Capitation Grant, and the National Health Insurance Scheme (NHIS).
These funds are intended to alleviate the burden on the country’s vulnerable populations.

GH₵1.5bn to Free SHS in 6 months
In his presentation of the 2024 mid-year budget review to Parliament, Finance Minister Dr. Mohammed Amin Adam revealed that approximately GH₵1.5 billion was allocated to support 1.4 million students under the Free SHS programme between January and June.

GH₵9.9bn invested Free SHS
This brings the total expenditure on the Free SHS initiative to GH₵9.9 billion since its implementation in September 2017, benefiting 5.7 million young people who may not have otherwise had access to secondary education.

GH₵1.5bn for investors
Furthermore, an additional GH₵1.5 billion was disbursed to provide relief and bailouts for individuals whose funds have been locked up in fund management companies.
This intervention aims to ease the financial distress faced by affected investors.

GH₵135 invested NIA
The government also invested GH₵135 million in the National Identification Programme since January 2024 to advance its digitalisation agenda and expand the unique identification system.
Finance Minister Dr. Amin Adam raised the 2024 economic growth forecast, highlighting that the economy is rebounding faster than expected.

Growth revises up to 3.1%
The growth rate is now projected at 3.1%, up from the previous forecast of 2.8%.
“Growth continues to exceed our expectations,” he remarked, noting that inflation was declining and a target of 15% inflation was possible by the end of the year, down from 22.8% in June.

3.4% deficit to GDP
The deficit stood at 3.4% of Gross Domestic Product (GDP) in the first half of the year.

Economic stability and resilience
Dr. Adam emphasized the significant strides made in stabilizing inflation and the exchange rate. “Since 2022, inflation has dropped by 31 percentage points, and the exchange rate has shown signs of stabilization.

3.1 months of import cover
These are critical indicators of our economic resilience and recovery,” he noted.
He also announced that Ghana’s international reserves have increased to 3.1 months of import cover, providing a stronger buffer against external shocks.

Strategic investments amid global challenges
The Finance Minister highlighted the broader economic context, stating that despite global economic uncertainties, the government remains committed to prudent fiscal management and strategic investments in social infrastructure.
He acknowledged the economic difficulties but stressed the importance of maintaining fiscal discipline while investing in programs that foster inclusive growth and build a resilient economy.
Dr. Adam also shared positive developments in the country’s economic performance, noting that Ghana’s economy grew by 4.7% in the first quarter of the year, surpassing initial projections.
He attributed this growth to effective policy measures and robust economic management.
Summarizing the government’s approach, Dr. Adam said, “Despite the global economic headwinds, our government remains steadfast in its commitment to fiscal discipline and social investment. We believe that strategic spending in social protection programs is crucial for fostering inclusive growth and building a resilient economy.”