66% of Its Debt

The vice-presidential aspirant of the New Patriotic Party (NPP), Dr Mahamudu Bawumia, has pointed out that more than half of the country’s debt was incurred under the governance of President John Mahama. 66% of Its Debt

He explained that the debt incurred in the last four years totalled GHS69 billion, which accounts for “66 per cent of Ghana’s debt”, accumulated “under the Presidency of John Dramani Mahama”.

He explained that interest payments in 2015 amounted to more than GHS9.6 billion while that for 2016 was GHS10.5 billion, five times what was allocated to six key ministries combined.

As interest payments go up, the space for development shrinks, he lamented, adding: “The interest payments on the debt stock in 2015 was six times Ghana’s oil revenue.

“The real effects of the reckless borrowing undertaken in the last seven years is seen in the magnitude of interest payments.

“With this major increase in debt, Ghana’s debt-to-GDP ratio has increased from 32 per cent in 2008 to 72 per cent at the end of 2015.”

For him, this was unacceptable as much of the funds were not invested in productive sectors to grow the economy, further stating that the total debt within the last eight years sums up to $39 billion.

Speaking at a public lecture at the National Theatre on Thursday September 8 under the theme: ‘State of Ghana’s Economy – Foundation of Concrete or Straw?’ Dr Bawumia accused the government of stifling growth in the manufacturing industry as well as stressing that there had been a “decline from 3.7% in 2008 to 2.2% in 2015”.

He was not enthused about the performance of agriculture and agribusinesses which he lamented had also reduced “from 7.4% in 2008 to 2.4% by 2015”.

Source: Ghana/ClassFMonline.com/91.3FM


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