Ghana’s debt accumulation rate has reduced for the first time in  over a decade, according to Finance Minister Seth Terkper.

In his delivery of the Mid-year Budget Review in parliament, Seth Terkper said government’s decision to consolidate expenditure by cutting social spending on subsidies has began to pay dividends.

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“This has ensured that for the first time in a decade, our debt accumulation rate has reduced. We have placed more emphasis on  lending from the local market, thereby reducing  our interest expenditure and the  pressures from the foreign exchange performance”, Mr. Terkper told parliament.

The Minister, who did not give the exact rate of increase,  said government’s renewed resolve to keep consolidating expenditure will continue to suppress debt accumulation rates. However, government’s total public debt stands at about GHC110 billion.

Seth Terkper went to parliament to re-align the 2016 budget with changes in revenue expectations and expenditure.

International fuel prices continued their slump in the first half of 2016, from a projected 52 dollars a barrel, to as low as 28 dollars per barrel. This according to the finance minister, calls for sharp revenue realignments.