The Communications Officer of the National Democratic Congress (NDC), Sammy Gyamfi, has refuted claims that Ghana’s economy operates like a Ponzi scheme.
This rebuttal comes in response to former Deputy Finance Minister Kwaku Kwarteng likening the management of the nation’s economy to a Ponzi scheme.
Gyamfi argued that the economic challenges faced by both the country and its citizens are a result of years of poor governance characterized by political mismanagement and economic inefficiency across various administrations.
During an interview on Joy FM’s Top Story, Gyamfi emphasized that the characterization of a Ponzi scheme does not apply to the NDC administration. He highlighted that under Mr. Mahama’s tenure, the budget deficit was kept at 6.1%, a figure within acceptable limits.
He further pointed out that in 2016, the debt-to-GDP ratio stood at 56%, also considered acceptable, with Ghana effectively servicing its debt during that period. Unlike the NPP, Gyamfi noted that the NDC did not record a budget deficit that could be deemed reckless.
Gyamfi highlighted specific figures indicating that the NPP government, in contrast, recorded budget deficits of 7.1% in 2018 and 7.5% in 2019 before the COVID-19 pandemic, which he deemed as indicators of irresponsible spending.
While acknowledging the validity of Kwarteng’s argument in principle, Gyamfi urged him to recognize the differences in fiscal management between the administrations. He stressed the need to hold governments accountable for their actions rather than generalizing all administrations as the same.
Gyamfi echoed the NDC’s longstanding position that the current government must learn to live within its means to avoid excessive borrowing and reckless expenditure. He expressed concerns that the economic policies implemented since 2017 have put the country’s economy at risk.
