Ghana’s debt stock would have been worse under a Mahama govt - Dep. Finance Minister

John Kumah, a Deputy Minister of Finance has said that Ghanaians should be thankful President Akufo-Addo is managing the country.

John Kumah

He said the current rising debt stock of the country would have been worse if it was any other president than the current one.

The Member of Parliament for Ejisu specifically said had John Mahama and the National Democratic Congress (NDC) won power, it would have been way worse.

“If you check the reality of what happened under President Nana Addo Dankwa Akufo-Addo’s tenure, I am sure if it had happened under former President John Mahama, we would have jumped to $100 billion. There was no COVID-19 to warrant a lockdown for extra expenditures of the government.”

“So these are very difficult times that President Akufo-Addo has been in, but he has managed it so well that he has won the world commendation.”

John Kumah insisted that the public expenditure on COVID-19 instead resulted in the current situation the country finds itself in.

Meanwhile, Dr. Cassiel Ato Forson, a ranking member of the Finance Committee has accused the current administration of being responsible for 60% of the current debt stock.

Dr. Forson said out of Ghana’s Public debt of GHS291 billion as of December 2020, President Akufo-Addo’s government accounts for GHS171.22 billion representing 60 percent.

“The main causes of the current hardships are the twin problems of the largest budget deficit (15.2%) in recent history, and a choking debt overhang that threatens the stability of the Ghanaian economy,” he stated, adding that “the hardships arising out of the deficit and debt situation is the direct result of mismanagement of the economy and misplaced populism by this government.”

Dr. Forson, who is also a former Deputy Finance Minister, cautioned that if the government does not pull the brakes on the current situation, the country will experience a decline in capital expenditure even as it spends more on interest servicing.

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