Togo: Budget deficit widens amid Covid-19 pandemic

Economic governance
Monday, 19 April 2021 16:18
Togo: Budget deficit widens amid Covid-19 pandemic

(Togo First) - Togo’s budget deficit reached 6.12% in 2020, due to greater spending in response to the Covid-19 health crisis. From CFA856 billion in 2019, this deficit soared to CFA1,132 billion in 2020, thus nearly 31% more.  

Meanwhile, budget income grew only by 5.72%, from CFA822 billion to CFA869 billion, including CF652 billion in tax revenues. 

The Covid-19 pandemic put the country in such a situation that it had to rapidly proceed to huge expenditures, especially in the social sector; this, in a context where economic activities and consequently tax revenues everywhere in the world were regressing, especially in the second and third quarters of 2020. In such circumstances, it isn’t surprising that the deficit widened, said an economist contacted by Togo First. 

It should be emphasized that Togo’s budget deficit had not reached such a level since 2016 where it stood at 6.09% of the GDP. 

Regarding forecasts for 2021, Lomé expects the deficit to fall to 2.64% of the GDP by the end of the year. In detail, the government expects expenditures to come down to CFA1,050 billion, while revenues should rise by 7%, exceeding a little more than CFA960 billion.   

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