Ghana is expected to suffer a revenue shortfall of up to GH¢2.2 billion as a result of the coronavirus pandemic, Finance Minister, Ken Ofori-Atta has said.
According to him, this is as a result of “the anticipated decline in import volumes and values, as well as the slowdown in economic activities.”
Presenting a financial statement to Parliament Monday on the economic impact of the covid-19 pandemic on the economy of Ghana, the Finance Minister outlined a significant hit on the country’s non-oil revenue.
“Based on the performance of import duties to date, as well as assumptions on projected decline in import volumes and values, preliminary analysis shows that import duties will fall short of target by GHȼ808 million for the 2020 fiscal year,” Mr Ofori-Atta told Members of Parliament.
The Minister said “the projected slowdown in non-oil GDP as a result of the coronavirus pandemic is expected to result in shortfalls in tax revenues (excluding oil tax revenues and import duties).”
These, he said, amount to some GHȼ1.4 billion. This brings the total estimated shortfall in non-oil tax revenues to GHȼ2.2 billion, Ofori-Atta noted.
Critics and social media users have also said the economy will take a hard hit as a result of the 14-day lockdown announced by President Nana Akufo-Addo on Friday.
In an address from the Jubilee House, President Akufo-Addo directed a halt in movements of persons in Accra and Kumasi for two weeks.
The move, like has been done by other countries across the globe, is to help stop the spread of the Covid-19 that has now claimed more than 36,000 lives.