The Director of Research at the Danquah Institute, Dr Frank Bannor, has shed light on Ghana’s debt profile from 2009 to 2023, emphasizing the complexities and importance of this discourse. The data reveals a significant increase in Ghana’s debt trajectory, soaring from $8.07 billion in 2008 to $29.2 billion by the end of 2016.
During the National Democratic Congress (NDC) government’s tenure from 2009 to 2016, there was an average annual addition of 32.75% to Ghana’s debt stock. In contrast, under the current NPP administration from 2017 to the present, the average annual increase in debt has been around 10.68%.
Dr. Bannor highlighted the stark difference in debt accumulation rates between the two political parties, attributing the lower figures under the NPP government to superior economic management, even amidst global economic challenges.
The discussion also delved into fiscal deficits as a crucial measure of government financial management. The NDC government experienced a significant deficit in 2012, attributed to heightened spending during an election year. This fiscal imbalance led to consecutive years of double-digit deficits from 2013 to 2014 and eventually necessitated seeking assistance from the IMF in 2015.
On the other hand, the NPP government’s performance in managing fiscal deficits has been commendable, with rare occurrences of double-digit deficits. Only one instance was recorded in 2020, amidst the challenges posed by the Covid-19 pandemic. This track record reflects the NPP’s commitment to prudent financial management.
Dr. Bannor emphasized that the borrowed funds have been used judiciously, with investments geared towards long-term benefits for future generations. The allocated funds have been directed towards various sectors such as energy, infrastructure development, construction of interchanges, road projects, railway expansion, healthcare, and more.
These strategic investments are aimed at enhancing economic growth and societal well-being. Dr. Bannor’s remarks come at a time when Former President John Dramani Mahama of the NDC has criticized the NPP administration for excessive borrowing without visible projects to show for it.
