The global crude oil price has declined significantly since the outbreak of the coronavirus and As of 30th March 2020, crude oil prices (Brent) were down to US$22.9 per barrel from the December 2019 price of US$65.9 per barrel.
According to Ghana’s Finance Minister, Mr. Ken Ofori Atta, Preliminary analysis shows that at an average crude oil price of US$30 per barrel for the year 2020, the Government will register a shortfall in crude oil receipts amounting to GHȼ5,679 million.
The government programmed a crude oil price of US$62.60 per barrel for the 2020 Budget, consistent with the PRMA (Act 815).
The corresponding projected shortfall in Annual Budget Funding Amount (ABFA) is GHȼ3,526 million; while shortfalls in the Ghana Stabilisation Fund and the Ghana Heritage Fund are GHȼ1,058 million and GHȼ453 million, respectively.
Projected shortfalls in transfers to GNPC are GHȼ642million.
Speaking at the floor of Parliament, Mr. Ken Ofori Atta said the anticipated decline in import volumes and values, as well as the slowdown in economic activities, will lead to shortfalls in both import duties and other tax revenues.
He said Based on the performance of import duties to date, as well as assumptions on the projected decline in import volumes and values, preliminary analysis shows that import duties will fall short of the target by GHȼ808 million for the 2020 fiscal year. Similarly, 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) amounting to GHȼ1,446 million, bringing the total estimated shortfall in non-oil tax revenues to GHȼ2,254 million.
Source: Mybrytfmonline/Kofi Atakora
