- Bawumia, has revealed that the rate of debt accumulation over the last three years under the Akufo-Addo administration is the lowest Ghana has achieved
- According to him, the NPP administration recorded the best in 10 years
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Vice President Dr. Mahamudu Bawumia, has revealed that the rate of debt accumulation over the last three years under the Akufo-Addo administration is the lowest Ghana has achieved in a decade.
According to him, regardless of the public debt which was recorded as at November 2019 as rising to GHS214.9 billion, the debt accumulation is still low.
Addressing a town hall meeting in Kumasi, Bawumia noted that the NPP promised that Ghana's macroeconomic stability would be improved and that has led to the Fiscal Responsibility Act, being met.
READ ALSO: NPP are better managers of the economy - BoG data reveals
“The strong fiscal adjustment that has taken place and better debt management meant that the rate of debt accumulation has slowed down considerably to the lowest in a decade. Between 2008 and 2012, Ghana’s debt stock increased by 267 percent.
Between 2012 and 2016, Ghana’s debt stock increased by another 243 percent. But between 2016 and 2019, the increase has been by 79 percent. So there is a big difference,” he noted.
Bawumia also attributed the reduction in fiscal deficit on a cash basis from 6.8 percent of rebased GDP in 2016 to 3.8 percent in 2018, 4.8 percent in 2019, to these promises.
READ ALSO: Ghana has to be careful of excessive borrowing - World Bank warns
Meanwhile, Country Director of World Bank, Pierre Frank Laporte has expressed worry at the rate at which the government of Ghana is borrowing to stay afloat.
He said the country risks being classified as a high debt distress country if the situation of excessive borrowing is not curbed.
His genuine concern comes a day after the government successfully raised US$3 billion Eurobond which was five times oversubscribed.
Speaking to the media after a courtesy call on the Speaker of Parliament, he said the government must be cautious of the amount of being borrowed.
READ ALSO: Whose child should stay at home if we cancel Double Track – Bawumia asks NDC
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