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 Ghana.
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.
Addressing parliament earlier today, Mr. Ken Ofori Atta said the equivalent of $100 million dollars announced by the President to cushion Ghana’s response programme is available and has been secured.
Ghana has recorded 152 confirmed cases of the deadly coronavirus with 5 deaths and two recoveries.
Read aspects of Finance Minister’s Address
Fiscal Impact of the Coronavirus Pandemic
- Mr. Speaker, the total estimated fiscal impact 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 is GHȼ9,505 million (2.5% of revised GDP).
- Mr. Speaker, a recalibration of the 2020 Fiscal Framework underpinning the approved 2020 Budget to reflect the fiscal impact of the coronavirus, as outlined above, without incorporating measures, shows that the overall fiscal deficit will increase from the programmed GHȼ18.9 billion (4.7% of GDP) to GHȼ30.2 billion (7.8% of revised GDP). The primary balance will correspondingly worsen from a surplus of GHȼ2,811 billion (0.7% of GDP) to a deficit of GHȼ5.6 billion (1.4% of GDP).
- Mr. Speaker, measures are, therefore, required to close the fiscal gap of GHȼ11.4 billion (2.9% of revised GDP).
