Question

impact of current and capital expenditures on the economy of ghana

Answer 1

Ghana became a democratic state in the early 1990s after a long period of military rule.Ghana is a developing economy with over 25 years of political stability.

Public expenditures can be divided into capital expenditures and recurrent expenditures.Capital expenditure means spending on fixed assets.That means capital expenditures led to the creation of assets and add to the capital stock.For example investment in infrastructure like buildings, road construction etc. in which those expenditures are basically incurred on long term development activities and are not recurring in nature.

Current expenditure includes expenditure incurred for purchase of goods and services which includes compensation of employees.

In Ghana, According to a review made by an organisation, highlighted that Ghana should track and identify poverty reducing expenditures . Ghana then further established a system to track poverty related expenditures.

Spending on public expenditure on goods and services is a major component of GDP. Government spending policies like increasing public expenditure, adjusting taxation, are good tools in influencing economic growth. Government spending has