The Minority in parliament has explained that every Ghanaian is indebted to the tune of GH¢5,709, following an increase in Ghana’s total debt stock to GH¢170 billion, according to the 2019 Budget Statement and Economic Policy.
The Minority’s spokesperson on Finance and Member of Parliament for Ajumako/Enyam/Essiam, Mr. Cassiel Ato Forson, lamented that the government has increased the public debt from GH¢122.2 billion in 2016 to GH¢170.8 billion within its 21 months in office.
Mr. Ato Forson expressed worry about Ghana’s debt stock, which has ballooned over the past few years, arguing that all Ghanaians, including those born today, owe GH¢5,798 each due to the government’s rampant borrowing.
Debating the motion on the 2019 Budget Statement and Economic Policy presented by the Finance Minister, Mr. Ken Ofori-Atta on Thursday, November 15, 2019 at the Plenary, Mr. Ato Forson pointed out that the situation of reckless borrowing by the government is substandard and unacceptable.
“According to the Ghana Statistical Service (GSS), Ghana’s population, as of 2016, was 28 million. Mr Speaker, in terms of debt at the time, Ghana’s public debt was GH¢122.2 billion. If you are to calculate the per capita, it means that an average Ghanaian at the time of 2016 owed GH¢4,334.53. According to GSS, Ghana’s population would be, by the end of the year, 29.4 million. In today’s terms, every Ghanaian, within 18 months, including a newborn baby, owes GH¢5,798. Mr Speaker, this is unprecedented, this is too much,” he stated.
He further added that within 12 calendar months, the current government has added GH¢32 billion to the public debt.
Majority’s position
The Majority in Parliament also pointed fingers at the previous government, accusing them of causing mess in the economic sector.
Minister for Information and Member of Parliament for Ofoase Ayirebi, Mr. Kojo Oppong Nkrumah, stated that the previous government should be blamed for the mess in the financial sector and the resultant economic hardship.
He stated that the previous government added twice of the current debt stock of the current government to the total debt stock of the country.
He explained that the current government’s initiative in ensuring macroeconomic stability will be a relief for Ghanaians.
He finally added that the current borrowing by the government is necessary in its fiscal consolidation and ensuring the development of social infrastructure.
Ghana’s debt hits GH₵170 billion
The Finance Minister, Mr. Ken Ofori-Atta, appearing at the Plenary in Parliament on Thursday 15th November, 2018, disclosed that the country’s debt has hit GH¢170.8 billion.
Reading the 2019 Budget Statement and Economic Policy of government, Mr. Ofori-Atta stated that the nominal public debt stock as of the end of September 2018, was GH¢170.8 billion, comprising external and domestic debt of GH¢86.6 billion and GH¢84.1 billion, respectively.
The Finance Minister further revealed that the public debt (including financial sector bailout) as a percentage of GDP stood at 70.7 percent at the end of September 2018, compared with 69.2 per cent during the same period in 2017.
Mr. Ofori-Atta reiterated that the public debt stock (excluding the financial sector clean-up cost) as a ratio of Gross Domestic Product (GDP) is 66.5 percent.
On debt-to-GDP ratio, the Finance Minister stated that in terms of the re-based GDP, the public debt-to-GDP ratio is 57.2 percent including financial sector clean-up cost and 53.9 percent excluding clean-up cost.
Source: GhanaJustice/S.Ayisi
