Ghana’s debt stock hits 335.9bn
Ghana’s debt stock has hit 335.9 billion as at July 2021.
Taking into account the expanding levels of Ghana’s public debts, Senior Lecturer at University of Ghana Business School Dr. Master Mensah needs government to check out how tax revenue can be produced from social interventions.
As per him, Ofori-Atta should minimise his appetite for borrowing.
Prudent financial management means the Finance Minister ought to tone down burning desire for borrowing.
Ghana’s all out debts stock at present stands at 335.9 billion as indicated by July 2021 figures by the Bank of Ghana.
Out of this, Minority in Parliament says President Akufo-Addo accounts for 60%, a craving for excessive borrowing.
Minority Caucus of Parliament has tossed an open invitation to Ofori-Atta to report persuading measures to fix the devastating Ghanaian economy after they anticipated deep and unbearable economic crisis by February 2023 asking government to quickly run for IMF debts reliefs and bailouts
Addressing African Editors in Accra, Former Deputy Finance Minister during Mahama regime Dr. Cassiel Ato Forson said “Ghana won’t be attractive to the bond market”.
There is income deficit since Ghana Revenue Authority has not had the option to hit its revenue targets for the first and second quarter of the year.
Financial expert at University of Ghana Dr. Ebo Turkson is encouraging Finance Minister to roll out stringent revenue generation.
“We should trust that administration will enlarge the tax nets by expanding”, he said.
“Finance Minister should disclose to us how he expects to acquire the 1,000,000 Covid-19 pokes of vaccines”.
In the interim, former President Olusegun Obasanjo has said acquiring to amass debts for the next generation is criminal.
Obasanjo said this in response to the Federal Government’s arrangement to source new credits.
Last week, President Muhammadu Buhari kept in touch with the senate to look for endorsement to acquire $4,054,476,863 and €710 million in an addendum to the 2018-2020 getting plan.
In a letter Senate President Ahmad Lawan read at the senate, Buhari clarified that there is a need to raise more funds for a few “basic undertakings”.
Albeit, the decision All Progressives Congress (APC) legitimized this, many have reprimanded the solicitation.
Shockingly, Ali Ndume, a serving APC congressperson from Borno State, said he was concerned over the parliament’s scramble to support credits.
Talking with Channels Television, Obasanjo said if the current obligation is left unserviced or neglected, it may turn into an issue for progressive organizations.
He said while acquiring isn’t an issue, getting advances when there is no ability to take care of is an issue.
“Assuming you need to assemble a business house and you proceed to get cash, and you have 50% of your own cash and you acquire 50% and in five years, you pay the 50% that you acquired. That is a savvy thing to do. However, on the off chance that you need to proceed to get cash for you to have the option to take care of yourself and your family, that is something moronic to do.”
“In case you are acquiring and amassing obligations for the future and the cutting edge after them, it is criminal. What are you acquiring for?
“In case we are acquiring for intermittent use, it is the tallness of imprudence. In case we are acquiring for improvement that can pay for itself, that is justifiable. Then, at that point, the installment, how long will it require to pay itself?”
The ex-president reviewed that during his residency in 1999, the nation was burning through $3.5 billion to support obligations that continued to increment.
“At the point when I came into government as chosen President, we were burning through $3.5 billion to support obligations. Indeed, even with that, our quantum of obligations was not going down.”
Source: africaneditors.com/African Editors