Gov’t borrowing surges to GHc17 billion in just 3 months– Muntaka

The Minority Chief Whip, Mubarak Mohammed Muntaka, has decried worsening government appetite for borrowing in the name of fighting the global coronavirus pandemic.

The National Democratic Congress MP, for Asawase in the Ashanti Region, alleges that within three months since the first recorded case of coronavirus in Ghana last March, the government had borrowed and printed monies to the tune of GH¢17.8billion.

Speaking at the party’s press conference on Monday, the Muntaka Mohammed alleged that the government borrowed an amount of $100million (GH¢600m) on March 12 when the country recorded its first case of COVID 19 victims.

$100m coronavirus money has landed – Finance Minister confirms

He went further to allege that the government withdrew some GH¢1.2 billion from the Ghana Stabilization Fund and also obtained a $1billion (GH¢6bn) facility from the IMF/World Bank.

The Asawase NDC MP said the “real elephant” (referring to another huge borrowing by the government) was the GH¢10bn advanced from the Bank of Ghana to support the government.

“What you are seeing in this short period of time is that our government have chosen to draw it hands all around including loans to the tune of GH¢17.8bn,” he stated.

Allergic to accountability

Muntaka Mohammed also accused the government of being  “allergic to accountability” and pointed to a one-page report on how the government planned to spend GH¢1.2billion.

“Just one sheet,” he exclaimed and expressed disappointment in government’s explanation to provide better details after expending the monies.

“They don’t want anybody to ask about accountability…that is the challenge of this government,” Muntaka lamented.

The Minority Chief Whip charged the media to demand accountability from the government for the huge amounts it has borrowed adding that” we have a responsibility to our country. We can choose to play ostrich by burying our heads in  the sand and pretending everything is okay.  But believe me, the harm of what the government is doing will hurt all of us if not today, it will hurt us tomorrow.”

Government borrowing is a politically charged phrase in Ghana’s politics.  The former NDC government struggled to fight accusations of reckless borrowing under the Mills/Mahama administrations.

John Mahama during his presidency described his government’s borrowing as ‘smart borrowing’.

In a response, Dr. Mahamudu Bawumia, running mate to the eventual winner of the 2016 elections Akufo-Addo,  however, disagreed.

Election year deficits

With the government’s 2020 budget seemingly thrown out of gear as a result of the global COVID 19 pandemic which has affected every economy in the world, there are fears the election year deficit may come back to haunt the country economically.

Last year, the government passed a Fiscal Responsibility Law to tame the appetite for election year deficits, fuelled by unbudgeted projects.