NDPC laments excessive borrowing by government
Chairman of the Economic Policy Committee of the National Development Planning Commission (NDPC), Dr. Nii Kwaku Sowa has expressed concern over the spate of borrowing by government.
Dr. Sowa is worried by government’s incessant borrowing with emphasis on borrowing to complete what he describes as ‘minor’ developmental projects.
Speaking at the 3rd National Development Forum organised by the NDPC, Dr. Sowa lamented how successive governments, year on year, continuously borrow for everything including ‘fundamental’ projects.
“We have virtually lived off aid since we were born as a nation. We have become so dependent on aid that many are wondering if we can make it without aid,” he said.
He added that much of the aid the country has received over the years had not been put into a lot of developmental projects saying such funds had only been used to stabilize the economy.
Dr. Sowa wants government to begin to look for alternative sources of funding with the suggestion for managers of the economy to consider remittances from Ghanaians abroad as a source of development finance.
“Most of the remittances goes into home construction and other consumption activities which should not be the case,” he stressed.
He argued that there is a need to open up the country’s source of funding to ensure we constantly make progress as a nation.
Meanwhile, some finance experts have suggested ‘Diaspora Bonds’ be used as debt instruments to raise development finance from its diaspora communities.
Dr. Sowa emphasized the ‘Diaspora Bonds’ is a viable alternative to borrowing from the international capital market.