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Business News of Saturday, 21 March 2020

Source: laudbusiness.com

Coronavirus: Govt can’t achieve 5% deficit target; amend budget – Prof Quartey

Professor Peter Quartey, Director, Institute of Statistical, Social and Economic Research (ISSER) Professor Peter Quartey, Director, Institute of Statistical, Social and Economic Research (ISSER)

Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, has indicated that the government is likely not to achieve the 5 per cent deficit target it set this year.

This, he said is due to the negative effects of the coronavirus outbreak on the Ghanaian economy.

Prof Quartey noted that all sectors of the economy will be hard hit by the pandemic, a situation that will affect government revenue targets.

He has therefore, asked the Finance Minister, Ken Ofori Atta to immediately go to parliament to amend the 5 per cent deficit target.

“The 5 per cent deficit target is not likely to be achieved,” “This is understandable”.

He added “The 5 per cent is a law so the finance minister should go back to parliament to amend it.”

Prof Quartey further said the government must provide stimulus packages in order to be able to deal the effects on the economy.

“The whole economy is going to be affected,” he said, adding that the government “must provide stimulus quickly so we can manage the damages.”

“Certainly we need the stimulus packages,” he said on The Key Point programme TV3 Saturday March 21.

Ghana has recorded nineteen cases of the coronavirus outbreak.

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