Ghana’s ballooning public debt, a threat to its economy

Ken Offori Attah addresses the Ghanaian parliament. [Image: courtesy]
Ghana—Harruna Iddrisu a Ghanaian lawyer and politician, representing Tamale South constituency in the seventh Ghanaian parliament, also a minority leader has suggested government claims of managing a resilient economy under pinned by high discipline and competence is façade soon to be put to light.

He foresees that only debt forgiveness or relief will offer sigh to the Ghanaian crumbling economy from the depth government has pushed it into.

Ghana’s finance minister Ken Ofori-Atta was in Parliament Thursday, July 29, to present the Midyear fiscal policy review of the budget Statement and economic Policy of the Government of Ghana for the 2021 Financial Year, when he said Government, per its discipline, will keep to its appropriations and will not subject its citizens to new taxes or demand to spend more.

“Mr. Speaker we are managing finances of the country with discipline and competence. The fiscal operations for the period January to June 2021 indicate that the overall budget deficit was GHc 22.32 billion, equivalent to 5.1% of GDP.

“The corresponding primary balance for the period was a deficit of GHc 7.3 billion, equivalent to 1.7 percent of GDP, against a target deficit of GHc4,797 or 1.1% of GDP.

“We will continue to pursue our fiscal consolidation agenda to ensure that we are main within the appropriation given by this house< he spoke to the house.”

Adding, “Mr. Speaker I stand before this August house today, to assure the nation that our transformation agenda is still on course. However, with Covid 19 still with us it is important to stress that this recovery is only the beginning, a beginning that requires a collective sense of responsibility and action as citizens to guide, to protect and participate in the recovery efforts. Mr. Speaker, this mid-year fiscal policy review that I am presenting does not come with supplementary budget and our revised fiscal frame work for 2021 is kept within the fiscal target of 9.5 percent of GDP.”