COVID-19 impacting revenue generation

 

DPI, Guyana, Monday, June 15, 2020

His Excellency President David Granger has stated that the unprecedented local outbreak of the COVID-19 pandemic has affected the country’s finances.

During a media interaction at the State House on Sunday, the Head of State explained that the global health crisis has caused a slowdown in production. This he said resulted in the decrease of revenues generated.

“COVID-19 has affected other aspects of government… we have received requests and presentations from every ministry of the government,” President Granger said.

The Head of State explained that ministries had to utilise the one-twelfth of the allocation for the 2019 budget they are entitled to because, given the political circumstances, there has been no national budget for 2020.

He highlighted that currently “money is there but it has to be deployed to COVID-19 responses so naturally the expenses are high.”

Since Guyana recorded its first case of the novel coronavirus, the Coalition Government has put several measures in place to reduce and control its spread locally. These measures have resulted in a slowed-down economy.

“We have not been able to collect as much revenue as we would have in normal times as many people are not working, some are working from home, production and trade has slowed, and the airports are closed, so there will be a shortfall in revenue,” President Granger explained.

The Head of State noted that as a result, there will naturally be a gap between the income and expenditure and maintained that everything the coalition has done has been within the law.