Interest payments hit GH¢10.6 billion in the first quarter of 2022 - BoG Report

The May 2022 Monetary Policy Report by the Bank of Ghana has revealed that domestic interest payments accounted for 82.7% of the total interest payments in the first quarter of 2022.

The report said external interest payments constituted the remaining 17.3%.

It further disclosed that total interest payments amounted to GH¢10.608.billion over the review period, higher than the envisioned target of GH¢10.037 billion.

The report explained that total interest payments constituted 63.8% of domestic revenue, down from 64.6% recorded in the corresponding period of 2021.

The government’s total expenditures and arrears clearance for the first three months of 2022 amounted to GH¢26.953 billion, about 5.4% of Gross Domestic Product, the report said.

The figure was below the target of ¢30.524 billion (6.1% of GDP).

This outturn represented year-on-year growth of 16.1%.

Compensation of Employees including wages and salaries, pensions and gratuities, and other wage related expenditure was estimated at GH¢7.555 billion.

The figure represented 15.7%, a percentage lower than the target of GH¢8.960 billion.

Use of Goods and Services for the period under review amounted to GH¢163.5 million.

Grants to Other Government Units, made up of National Health Fund, Education Trust Fund (GET Fund), Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to GNPC and other earmarked funds, amounted to GH¢4.459 billion, lower than the target of GH¢5.596 billion.

This represented a shortfall of 20.3% from the target, but recorded a year-on-year growth of 34.8%.