Pulse.com.gh logo

Bank of Ghana Gov't hasn't borrowed from BOG in 2016- Mahama

Born on May 5, 1968 Dr. Asiama is an economist who has been working with the central bank for two decades.

  • Published:
President John Dramani Mahama on Accounting to People Tour play

President John Dramani Mahama on Accounting to People Tour

President John Dramani Mahama has revealled that government has not borrowed any money from the central bankin 2016.

According to him, the operations of government have been financed using revenue generated through taxes and other means, which, in his view, proves the economy, is buoyant.

Mr Mahama explained that even though government has a borrowing limit of up to 10% of the budget in 2015, his administration has opted not to utilise that window.

“Under the extended credit facility of the International Monetary Fund (IMF), this year we started a zero central bank financing. So, every expenditure by government is not borrowed from the central bank,” he said on Volta Star radio in the Volta region Thursday April 21, during his ‘Accounting to the People’ tour.

READ MORE:Mahama should focus on accounting for monies borrowed - Group

Mr Mahama explained that in the past, government had a 10% ceiling and could borrow up to 20% of the previous year’s budget, but such borrowing, he added, needed to be balanced so it does not exceed 10% by the end of the year.

According to him, “with every payment and expenditure that we are making, this economy is more resilient and disciplined because we are using the revenues we collected”.

He further explained that gold and oil, which are major commodities exported by Ghana, saw a huge drop in prices in recent times “yet the macro economy is performing well”.

The President pointed out that critics, who accuse government of running the economy down are mere propagandist because “at the end of 2012, we had a 12% deficit to GDP. The year before, we had come down to 9.6% and last year, we came down to 7.3% and this year the deficit is 5.3%, so, it shows that the economy is showing resilience on the macroeconomic front”

Mr Mahama noted that through good monetary and fiscal policies, “inflation is slowing and we are expecting a decline soon. When inflation comes down, interest rates will also follow, the cedi has stabilised for a while and that cannot be an economy in crises. Public debt is also slowing and there are many signs that show that the economy is doing better”.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Incompetence Otabil wasn't qualified to be Capital Bank Board Chairman...bullet
3 Breaking Otabil finally breaks silence on banking controversiesbullet
4 Salaries In 2018 Here are the dates public workers will be paid in...bullet
5 Education Top 5 private high schools in Ghana according to WAECbullet
6 Banking In Ghana Stranded customers of First Allied Savings &...bullet
7 Nana Appiah Mensah Menzgold CEO invited by EOCObullet
8 $100K Saga Presidency denies having knowledge of $100,000...bullet
9 Collapsed Banks Here are the auditing firms for the 7...bullet
10 Banks Collapse Gov’t to take action against those...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Former Capital Bank staff grills pork for survivalbullet
6 Support Finance minister buys Kantanka carbullet
7 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet
9 Tech 6 reasons you should buy an iPhone SE instead of...bullet
10 Video We are determined to move Ghana beyond aid - Bawumiabullet