Coronavirus has punched big hole in Gov’t revenue – Akufo-Addo

President Akufo-Addo has said government’s projections for this year, 2020 has been thrown out of gear following the disruptions caused by the coronavirus pandemic.

According to the President, a big hole has been punched in government revenue as a result of the pandemic.

“…Everybody in the country also know that government is the one hardest hit by this pandemic. We have huge parts of government revenues that have gone out of the window as a result of the pandemic.

He noted that plans and policies of the government earmarked for the year would have to be amended.

“The 2020 budget which was laid in November was predicated on $65 barrel oil. And today we all know that oil now is what 20, 18,19, 20, 21 dollar a barrel…” he said the Jubilee House on Wednesday.

The overall cost of the covid-19 shocks on the economy has been quoted as GHȼ9,505 million.

Finance Minister, Ken Ofori Atta told parliament when he presented a statement on the economic impact of the coronavirus pandemic in March.

The figure is translated into 2.5% of Ghana’s GDP emanating from the shortfall in petroleum receipts, shortfall import duties, shortfall in other tax revenues, the cost of the preparedness plan, and the cost of Coronavirus Alleviation Programme.

Meanwhile, the Finance Minister has said government is required to close the fiscal gap of GHȼ11.4 billion (2.9% of revised GDP).