Monetary Policy
MPC Press Release - May 2003
Friday, 30 May 2003 00:00

The fiscal outturn shows increased domestic revenue mobilization and lower than programmed expenditure.

  • Total revenue for the first quarter amounted to ¢2,698 billion, exceeding the budget target by some ¢90.0 billion.
  • Total expenditure on the other hand was contained below the budget target with the result that there was a domestic primary balance surplus of ¢190.8 billion compared to a budgeted deficit target of ¢421.0 billion for the quarter. Consequently, net domestic financing of the budget amounted to ¢369.0 billion, which was significantly less than the budget target of ¢823.0 billion. The government’s borrowing requirements were met fully by the non-bank private sector on the domestic money market.
  • Government improved its financial position with the banking system to the tune of some ¢551 billion by the first half of May 2003. However the domestic public debt stock rose by 3.9 percent in the first quarter of 2003 compared to an increase of 8.5 percent in the same period last year.
  • Holdings of government securities continued to be dominated by short term instruments, with the 91-day and 182-day Treasury bills accounting for some 80.0 percent of the total. The Banking system holdings of Government securities declined from 55.0 per cent in March 2002 to some 51.5 percent by March 2003.

External sector indicators during the year through May 2003 were also favourable.

  • Earnings from cocoa and minerals repatriated through the central bank ($58.2 million and $73.1 million respectively) were above projected levels.
  • Payments for oil imports through May 2003 amounted to some $167.6 million, lower than the projected level.
  • The volume of foreign exchange inflows in the form of private inward remittances, from companies, NGOs, embassies, churches, individuals, etc, channeled through the banks and finance companies amounted to some $540 million in the first quarter of 2003. This represents some 70.0 percent increase over the amount recorded in the same period in 2002.
  • Forex purchases and sales by the banks for the year to May 22, 2003 amounted to $434 million and $415 million respectively, an increase of 42 percent and 40 percent respectively over the 2002 levels.

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