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Coronavirus pandemic to price tag economic system around GHȼ9 billion – Finance Minister

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Government estimates the financial state will record a loss of not less than GHȼ9,505 billion this calendar year due to the coronavirus pandemic.

The figure represents 2.5% of the country’s revised Gross
Domestic Product (GDP), Finance Minister, Ken Ofori Atta introduced whilst
briefing Parliament on the measures taken by government to mitigate the probably
influence the coronavirus pandemic.

“Mr. Speaker, the complete estimated fiscal influence from the shortfall in petroleum receipts, shortfall import obligations, shortfall in other tax revenues, the cost of the preparedness plan, and the charge of Coronavirus Alleviation Programme is GHȼ9,505 billion (2.5% of revised GDP),” the Minister explained to the Residence, Monday, March 30, 2020.

The expected decline in import volumes and values, as nicely as the slowdown in financial routines, will lead to shortfalls in both of those import responsibilities and other tax revenues, he acknowledged.

President Akufo-Addo in a nationwide address Friday, declared a two-week partial lockdown in components of Higher Accra and Kasoa in the Central Area as effectively as the Ashanti Regional money, Kumasi. This is to curb the unfold of the coronavirus also identified as COVID-19.

To address the destructive impression the pandemic is probably to
have on the economy following the lockdown, the authorities outlined a quantity of
measures to cushion the economy towards any shocks the economic system could possibly
encounter. These include things like the institution of a Coronavirus Alleviation
Programme (CAP).

The CAP will concentration on areas that will give maximum
final results in assuaging the affect of the coronavirus pandemic with a concentration on
preserving towards job losses, defending livelihoods, supporting little
corporations, and making sure the programme is proficiently and sustainably
executed.

It will also find supplemental funding for the advertising of
chosen industries to shore up manufacturing for export and import substitution,
to support SMEs and make work, to spouse with Pension Funds and Insurance coverage
Cash to build assures and very first decline instruments.

The Finance Minister advised the Residence that his Ministry ideas
to immediately release an amount of GHȼ1 billion upon approval by Parliament.

“The Ministry is proposing to use the equivalent of USD 219
Million from the Stabilisation Fund,” he extra.

He also announced a recalibration of the 2020 Fiscal
Framework underpinning the authorized 2020 Budget, to replicate the fiscal effects
of the coronavirus “without incorporating steps, demonstrates that the total
fiscal deficit will improve from the programmed GHȼ18.9 billion  (4.7% of GDP) to GHȼ30.2 billion (7.8% of
revised GDP).”

“The most important balance will correspondingly worsen from a
surplus of GHȼ2,811 billion (.7% of GDP) to a deficit of GHȼ5.6 billion (1.4%
of GDP). Mr. Speaker, actions are, consequently, necessary to shut the fiscal hole
of GHȼ11.4 billion (2.9% of revised GDP),” he stated.



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