Accra, July 20, 2017//-Ghana’s largest opposition party-National Democratic Congress (NDC) has chastised the government for ballooning the country’s debt stock which currently stands at GH¢127.1 billion, representing 62.5% of GDP as against GH¢122 billion it inherited in December 2016.
According to the party which lost the 2016 elections to the governing New Patriotic Party (NPP), the Akufo-Addo-led government would burden the citizens with an estimated GHS640 billion debt within four years, if it is not checked.
The National Chairman of the NDC, Kofi Portuphy who made the prediction at the news conference in Accra today, said was the “reckless” borrowing of the government would collapse the Ghanaian economy.
He maintained the government had borrowed GHS40 billion within six months.
“Indeed if Nana Addo and Bawumia had borrowed a whopping GHS 40 billion in only six months then by the time they run through their four years, Ghanaians will have been saddled with GHS640 billion debt burden,” Mr Portuphy said.
He argued it was only a matter of time for Ghanaians to experience the hardship the country will be plunged into by government’s new found love for borrowing.
“Are we safe? Is the future of Ghana safe?” Mr Portuphy asked.
He questioned: “Who cannot remember the shrill voices of [Vice President] Dr Mahamudu Bawumia all over the place berating the NDC government of borrowing to develop the nation?” Mr Portuphy vividly recalled the statements made by the then running mate of the NPP during the 2016 campaign periods.
“The lies of the [governing] NPP has been badly exposed because in only six months it has borrowed over GHS40 billion in direct contravention of their sworn pledge never to borrow if given the opportunity to govern”.
At a media encounter with the President Nana Addo Dankwa Akufo-Addo, Bernard Avle of Citi FM asked the President a question on debt which he (Mr Akufo-Addo) could not question and had to pass it to Dr Bawumia.
Mr Avle asked: “In March this year, we went for Ghc1billion 3-year bond. In April a $2.25billion dollar bond which translates into Ghc10.25 was announced. In the same month, we announced a $2.4billion bond to clear legacy debts in the energy sector, translates that to Ghc12billion.
“Last week we were told there is a Ghc17.4billion bond being sought for T3. Putting all the figures together in Ghana cedis, that’s about Ghc40billion if all these bonds go through,” Mr Avle said.
But Dr Bawumia said: “Deficit was 9.4% GDP n 2016. Defict is expected to reach 6.5% GDP which brings down the debt stock. From 2012 to 2016, gov’t was adding 6.5% of GDP to debt stock. After inheriting 72% of GDP to debt ratio, the government wants to bring it to under 71% in 2016”.
African Eye Report
