He said the government is issuing bonds and borrowing mostly just to fulfill campaign promises.

Dr Boakye, who is with the Institute of Fiscal Studies, said the government should relook at the expenditure mix so it does not spend beyond its budget.

“Relook out at the expenditure mix, where the monies are going, re-assess them; some of these decisions are coming from political campaign promises; I understand that but when you are saying you are going to fulfil all the campaign promises and at the same time not enough money in the coffers and you have to result to borrowing – and borrowing is taking the country to a the level where our debt is unstainable”, said Dr Boakye.

According to him, “The country’s fiscal position is very bad”, wondering: “How are we paying for it?”

President Nana Addo Dankwa Akufo-Addo
President Nana Addo Dankwa Akufo-Addo

“You are borrowing money to do so, and we are going to be paying interest on that and you are going to pay for those who cannot pay for it. I don’t think this is an effective resource allocation” he told Class FM in Accra.

The International Monetary Fund, in its recent assessment of Ghana said the country is closer to being classified as a high-debt-distressed country.

This means the IMF is concerned about the country’s ability to honour its international obligations.

The government of Ghana borrowed GHS4.2 billion in notes and bonds in December 2019.