Ghana COVID-19, fiscal and public financial management issues

  1. Fiscal deficit has seen near 10 percent of GDP. “What COVID-19 has done with the loss of the revenue is that it has created a much bigger funding gap and we have to resort to few other sources to plug that gap. Even with the gap that existed [pre-COVID-19], we could still have pursued a few of these rationalisation initiatives to more or less reduce how big this gap would be. “Some of these savings could actually then mean we probably would run under 6 percent to 6.5 percent deficit, which is probably 1.5 percent lower than the deficit estimates now that we are expecting a between 8 to 10 percent budget deficit,” he said https://thebusiness24online.net/2020/07/15/fiscal-deficit-seen-near-10-percent-of-gdp/
  2. Suspending fiscal rules for 4 years is risky, warns economist. Another economist, Dr. Theo Acheampong, also expressed the view that the period set by the government to rein in the deficit could have been shorter than four years. He added that given the uncertainties caused by the virus, predicting economic events in four years’ time is likely to be an overstretch. https://thebusiness24online.net/2020/08/19/suspending-fiscal-rules-for-4-years-is-risky-warns-economist/

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