Domestic revenue mobilization formed a key component of the government strategy to accelerate growth and employment in 2011. A higher than expected revenue inflows materialized in 2011 amounting to GHC12,908.0 billion representing 22.9 percent of GDP. Despite the increase, some sectors recorded significant shortfalls. Export duties declined from GHC62.2 million in 2010 to GHC5.0 million in 2011. Meanwhile, export exemptions increased by about 131.8 percent to GHC634.6 million. b) Expenditure Total expenditure for 2011 amounted to GHC12,743.7 million (23.9% of GDP), compared with GHC9,211.5 million (19.9% of GDP) recorded in the corresponding period of 2010. This represented an increase of 38.3 percent. The surge in the pace of government spending was attributed to: • Increases in capital expenditures (especially foreign financed capital), which exceeded the planned budget by almost 33 percent. • increased discretionary spending particularly by the Ministries, Departments and Agencies (MDAs). • Implementation of the single spine pay policy and the subsequent wage arrears that had to be paid. Table 4.3: Total Expenditure (in millions of Ghana Cedis) 2009 2010 Statutory payments 6,165.9 Discretionary 3,045.6 payments Total Expenditure 9,211.5 % of GDP 19.9 Source: Bank of Ghana, Monetary Policy Report, February 2012 Sixth Annual APRM Progress Report: January – December 2011 2011 8,354.4 4,389.3 12,743.7 23.9 52