Finance Minister hints at personal sacrifices in post-coronavirus economy

The Finance Minister has hinted Ghanaians must be prepared to make personal sacrifices as government plots its economic recovery after a coronavirus battering, which is yet to ebb.

Explaining the economic impact of coronavirus, Ken Ofori-Atta pointed out there is a GHȼ14bn black hole in the government’s revenue chest, while the economy has also shrunk by some 6%. Growth is projected at 0.9% – a mighty fall.

The government has also had to stash its hands into the Ghana Stabilization Fund for $200million and has also funded socio-economic interventions such as picking utility bills for every Ghanaian for some three months.

Ahead of the reading of the mid-year supplementary budget, the Finance Minister said on JoyNews’ PM Express “certain personal sacrifices are going to occur.”

Ken Ofori-Atta when he last addressed parliament in March estimated that some GHȼ9,5billion had been lost as a result of shortfalls in petroleum receipts, import duties, in other tax revenues,the cost of the preparedness plan, and the cost of Coronavirus Alleviation Programme.

During the interview, monitored by theghanareport.com, he described the impact of coronavirus on the economy as “frightening, challenging and humbling.”

The Finance Minister said despite this, the Ghanaian economy has shown resilience seen in “good” foreign exchange numbers and inflation figures.

He made particular mention of the $3billion raised from bond market in February just before coronavirus began to impact the economy in March.

The stability of Ghana’s economy, “basically shielded us”, he gave his government a thumbs-up for its economic management skills.

The former investment banker said his other colleague Finance Ministers have been sharing “harrowing” stories of how their pandemic has crippled their economies and suggested, Ghana has dodged a bullet.

Going forward however, citizens must take their “share of the burden as a responsible society” in helping the economy recover, he said.

Ken Ofori-Atta would not indicate specifics of the personal sacrifices to be made in a post-coronavirus recovery plan but he ruled out increasing taxes in the mid-year budget review.

“You don’t kick a man when he is down,” he said.

The Finance Minister, however, said government would deepen the level of tax compliance in the country. leveraging digital tools.

But even that, government would show some “forbearance to give people some time”.

Right now, however, the government’s focus is keeping people alive and ensuring there is enough food supply, he said.