Togo's budget revenues could reduce by 40% due to the Covid-19 pandemic, Minister of Finance predicts

Economic governance
Monday, 18 May 2020 17:50
Togo's budget revenues could reduce by 40% due to the Covid-19 pandemic, Minister of Finance predicts

(Togo First) - “Due to the various fiscal measures taken by the government to support businesses, budget resources should decrease from XOF578.4 billion to 348.4 billion.” The statement was made last Friday by the Togolese minister of finance, Sani Yaya, during a meeting with the private sector. 

Explaining the reduction (of about 40%) in detail, the official said tax earnings should slump by around XOF198 billion, while non-tax and service revenues are expected to plummet by XOF32 billion, as health and social expenses surge amidst the Covid-19 pandemic. 

According to Yaya, “the tertiary sector (trade, services, travel, and tourism) is the most affected” by the drastic measures taken in response to the outbreak. 

The situation could cause the Togolese economy to plunge since it greatly depends on external economies. In effect, “GDP growth should stand at 1.3% according to the latest macro-budget review. The gross domestic product could fall by 1.5% in 2020, in the worst case, as against an initial forecast of 5.5%.”

Looking at present circumstances, the minister of finance pointed out the need for national solidarity to restart the whole Togolese economic machinery. 

Yaya added that in line with the adopted strategy, which is backed by the national fund for response and economic recovery, XOF110 billion will be allocated to response actions, X0F110 billion to boost resiliency and 180 billion to restart the economy. 

For now, he stressed, the government is still far from raising these funds which makes a total of XOF400 billion.

Fiacre E. Kakpo

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