Ghana: Finance Minister seeks GHS11. 8 billion from Parliament for remaining months of 2020

Ghana's Minister of Finance, Ken Ofori-Atta, on July 23 has requested Parliament to approve more than GHS11. 8 billion to support the government's expenditure for the remaining months of 2020, according to a news report by News Ghana.

The Minister, who made the request in his mid-year budget review, said the coronavirus pandemic had led the government to breach the Fiscal Responsibility Act,

The Act imposes a cap of five percent of GDP on the fiscal deficit but the challenges of the pandemic had necessitated a breach with the deficit now projected to reach 11.4 percent of Gross. Domestic. Product (GDP)

"Whiles this pandemic requires us to exceed the limits imposed by the FRA, Act, 982, we have had to make these major expenditures to protect lives and livelihoods of Ghanaians and sustain businesses," Ofori-Atta said.

Government revenue projections for 2020 were affected by the slowdown in economic activities as a result of the impact of the COVID-19 pandemic, shortfalls in domestic direct and indirect taxes, and custom taxes, estimated at GHS5.089 billion.

There was also a reduction in petroleum revenue mainly due to the decline in crude oil prices (from USD62.6 per barrel used in the 2020 budget to USD39.1 per barrel) as a result of the pandemic.

Ofori-Atta said the supplementary budget would assist the government to implement various initiatives to revive the economy.