Government has raised a total of 1.01 billion cedis three-year domestic bond issued at a yield of 21.5 percent.
The bond, which had a bullet principal payment was marketed to resident investors only, at an initial pricing guidance of 19 to 23 percent.
According to the Bank of Ghana, the bond had a face value of one Ghana cedis and was issued at a minimum bid of GHS50,000 and multiples of GHS1,000 thereafter.
The bookrunners were Barclays, SAS, and Stanbic.
Growth projection
Government projected a real GDP growth of 6.3 percent; with oil for the year 2017, while non-oil real GDP growth is estimated at 4.6 percent.
This is compared with the 2016 GDP, based on the provisional out-turn for the first three quarters of the period, which is estimated at 3.6 percent, with the non-oil real GDP estimated at 4.6 percent.
Presenting the budget in parliament, Finance Minister, Ken Ofori-Atta, stated that government will work at achieving its macroeconomic targets to improve the lives of Ghanaians.
He announced that, government has projected an end-of-year inflation of 11.2 percent, while overall fiscal deficit is pegged at 6.5 percent of GDP.
Expenditure for 2017
Total expenditure for the year 2017, (including provision made for the clearance of arrears and outstanding commitments), is estimated at GH¢56.5 billion, equivalent to 27.8 percent of GDP.
According to the budget estimated expenditure for the year represents a 21.0 percent increase over the provisional outturn for 2016. Of this amount, GH¢3.7 billion, equivalent to 1.8 percent of GDP and 6.6 percent of total expenditure will be used for the clearance of arrears and outstanding commitments.
Debt stock
On debt, the total public debt stock as at end 2016, stood at 73.3 percent of GDP up from 71.63 percent in 2015.
This was due to the larger than expected fiscal deficit and financing requirement in 2016.
Domestic and external debt stood at 32.02 percent of GDP and 41.29 percent, respectively in nominal terms.
The public debt stock as at end 2016 stood at GH₵122.3 billion (US$29.2 billion), with domestic and external debt of GH₵53.4 billion (US$12.8 billion) and GH₵68.9 billion (US$16.5 billion), respectively.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana
