(COVID-19): GHC 3BN To Be Spent On Electricity Subsidy, Power Debt To Worsen Soon – ACEP

It’s being estimated that about GHS3 billion will be spent by the government on the total amount of electricity subsidy announced by President Nana Ado Dankwa Akufo-Addo as a result of the novel Coronavirus. This constitutes about GHS2.7 billion in tariff and about GHS300 million in Value Added Tax (VAT).

According to the African Center for Energy Policy (ACEP), if the government fails to honour its obligations, the sector’s liquidity situation will worsen. In a statement on the electricity subsidy, ACEP said:

“The policy will also further deepens the budget deficit, which is estimated to be about GHS9.7 billion. If the government intends to add GHS3 billion from the power sector, it will require another revision of the fiscal numbers presented to Parliament”.

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