i) Computations of Ratios

ii) Report on Financial Performance and Financial Position of the Consolidated Fund of Ghana for 2021 and 2022

Introduction
This report analyzes the financial statements of the Consolidated Fund of Ghana for the years 2021 and 2022, focusing on key financial ratios to assess the nation’s financial performance and position.

Financial Performance
The financial performance of the nation is evaluated based on revenue generation and expenditure management:

• Revenue to GDP: Revenue as a percentage of GDP has declined from 4.40% in 2021 to 3.96% in 2022, indicating a slight reduction in revenue mobilization.
• Wage Bill: The wage bill as a percentage of total tax revenue decreased from 55% in 2021 to 45% in 2022, but it remains high. The tax burden per capita increased from GH¢712.88 to GH¢876.62 over the same period, suggesting an increased burden on the citizens.

Financial Position
The financial position is assessed through debt management and capital expenditure:

• Debt to GDP: The debt-to-GDP ratio, although reduced from 80.80% in 2021 to 67.62% in 2022, remains concerning.
• Capital Spending: There was an increase in capital spending as a percentage of GDP from 25.63% in 2021 to 33.23% in 2022, indicating that rising debt levels are being channeled into capital investments.
• Debt per Capita: Debt per capita increased from GH¢15,132.20 in 2021 to GH¢16,860 in 2022, reflecting a growing debt burden on each citizen.

Conclusion
The financial performance of the Consolidated Fund shows challenges in revenue mobilization and a high wage bill. Although the debt-to-GDP ratio has improved, the overall debt burden remains high. Capital spending has increased, which is a positive indicator, but more needs to be done to improve revenue generation and manage debt effectively.