Minority’s claim we borrowed over GHC 80bn false – Gov’t
Government has denied assertions by the Minority in Parliament that it has borrowed over 80 billion cedis which it has failed to account for.
The Minority at a news conference on Thursday accused the New Patriotic Party (NPP) government of borrowing in excess of over 80 billion cedis with nothing to show for it.
According to Information Minister, Kojo Oppong Nkrumah, the statement by the Minority is ridiculous and mere propaganda.
Addressing the media in Accra on Friday, the Minister outlined the reasons for the increase in the country’s debt stock.
“With regards to the external loans, all of those loans are given approval by Parliament in accordance with Article 181 of the Constitution 1992 and sections 55, 56, 57 of the public financial management act Act 921 for which the Minority is a party. You can add up all the loans this administration has taken to Parliament and it will not come near 80 billion.
“Indeed if there was a list of loans that add up to 80 billion you will imagine that the Minority will put up that list by now. The reason for which our debt stock today will show a difference of about 80 billion is that the figures are a nominal public debt stock and the public debt stock figure is made up of a number of things. Old loans that are now being disbursed within the tenure of this administration add to the public debt stock. It does not mean our administration has gone to borrow.”
The Minority in Parliament had raised concerns over what it described as the unprecedented levels of borrowing under the New Patriotic Party (NPP) government.
The Minority in a statement said the reckless borrowing under the NPP government is a betrayal of the trust reposed in President Nana Akufo-Addo and his Vice, Mahamudu Bawumia.
“The Minority caucus is deeply concerned about the reckless borrowing of the NPP government. The extent of borrowing marks a betrayal of the trust reposed in the President after he and his then Vice Presidential candidate promised in opposition not to borrow because according to them, we had all the resources needed to finance our development.
“Not only has the President’s insatiable appetite for borrowing exposed that promise as hollow, it also mshows that he and his team do not posses the competence they claimed to have to generate domestic revenue to finance the national budget.”
Ranking Member on the Finance Committee, Cassiel Ato indicated that government is mortgaging the future of the country by borrowing recklessly.
He made these comments while addressing the press today [Thursday] where he indicated that the government’s total revenue is not enough to settle its debts.
“If we are to pay for debt and pay for wages and salaries because they are all statutory, you need more than your total revenue to be able to service that so I am surprised that the Finance Minister is saying that it is not a problem because you can pay for it. You cannot pay for it because the total revenue is not enough to pay your wages and salaries and service your debt.
“Infact the situation is even worse if you take the statutory payment out because remember that the total revenue includes what we have for GETFund, National Health Insurance and District Assembly Common Fund. If you are to take that out, you have about 130 percent so the situation is bad…Please let us not allow them to use debt to GDP to convince us.”
The Central Bank recently reported that the county’s debt stock had hit 198 million Ghana cedis.
The debt accumulation in 2019 includes proceeds from the US$3 billion Eurobond the government had issued in March.
The growing public debt feeds into the rising interest payments the government pays on its borrowings.