Skip to main content

Ghana's debt within manageable limits - Gov't responds to Minority

A Deputy Information Minister has said it is misleading for the Minority in Parliament to criticize government for what it calls "excessive borrowing" without reconciling it with the numerous infrastructural projects government was undertaking.

The Minority claimed Ghana has borrowed eight billion Ghana cedis in eight months, but the governing National Democratic Congress(NDC) has insisted that the country's debt is within manageable limits.

The Minority in Parliament fears Ghana risks having its international credit rating downgraded, if government does not halt the trend of "excessive borrowing from both domestic and international markets".

NPP MP for Tafo Pankrono, Dr. Anthony Akoto Osei, who addressed the media on behalf of his colleagues said: "It also needs to be pointed out that this 49.5% debt ratio means the country is on the verge of crossing the 50% threshold".

But responding to the Minority, Felix Kwakye Ofosu, Deputy Minister for Information and Media Relations, told Joy News Ghana's debt to GDP ratio is better than top seven most industrialized countries in the world.

He cited the Debt to GDP ratio of Japan which is 237% while the U.S carries a ratio of 106%.

The public debt stands at GH¢43.9 billion as of August 2013, but the country is worth GH¢85 billion.

But Kwakye Ofosu said government is investing the monies borrowed into infrastructural projects and social services such as education.

The deputy minister offered to count about a 100 road projects that has been financed with funds borrowed by government. He mentioned the Awoshie-Pokuase road.

He also cited the following roads, "60km Assin Praso-Asante Bekwai, a 19.5km Agbozime-Afloa road, a 93km Tarkwa -Bogoso road, about 436km cocoa roads in cocoa-producing areas and a 74.8m euros Kwame Nkrumah Circle interchange".

He conceded that the NDC government is having difficulty in meeting its statutory obligations after failure to credit accounts of the District Assembly Common Fund (DACF), the National Health Insurance Fund (NHIF), the Ghana Education Trust Fund (GETFund), the Road Fund and others.

But the deputy minister said the Minister of Finance and Economic Planning had met the leadership of parliament "barely a week ago" to adopt a roadmap for making disbursement.

This difficulty is not the first time in Ghana's history, Felix said and explained that under the NPP regime some statutory payments such as the GETFund were not been made for two years.

He said government had other commitments apart from making statutory payments. He pointed out a "dramatically" high annual wage bill of GH¢ 9bn which is claiming 99.3% of non-earmarked revenues.

Clearly, he says, this situation will pose a challenge to government's ability to make statutory payments.


Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…