Ghana is broke, prepare for difficult times next year – John Jinapor cautions

A member of the Finance and Mines & Energy committees of Parliament, John Jinapor, is projecting tough times in 2021 due to what he calls the poor management of the economy under the Nana Akufo-Addo-led government.

Speaking to journalists on Wednesday, October 28, after the Finance Minister, Ken Ofori-Atta, presented the budget statement for the first quarter of 2021, the National Democratic Congress (NDC) Member of Parliament for Yapei Kusawgu said Ghana is broke.

“In 2016 when Mr Terkper came here, he requested for about 10 billion [Ghana cedis], today Ken Ofori-Atta is requesting for 27 billion [Ghana cedis]. Out of this 27 billion, over 10 billion of that amount will be used to service debt. It tells you that this country is broke,” he said.

Citing the latest International Monetary Fund (IMF) report on Ghana that says the country’s debt-to-GDP ratio is projected at 76%, Mr Jinapor said when Ken Ofori-Atta took over as Minister, Ghana’s debt-to-GDP was about 66% -- a sign that the country’s finances were not being managed well.

“When a middle-income country’s debt-to-GDP crosses the 70% mark, it means you are hugely debt-distressed. All of us should prepare for difficult times next year.

“Because what the Minister is doing, based on the IMF document, is that he is running a deficit of 16%. That is the highest in that report. Even South Africa is not running that deficit; Nigeria is not running that deficit. Everybody is prioritising and spending on critical areas but our Minister is interested in recurrent expenditure,” he stated.

He also criticised the Minister for failing to present current data during his budget presentation.

“The Finance Minister is supposed to give us up to date information, not to tell us about what happened in 2019. When he was presenting the 2020 budget, he had the opportunity to report 2019 figures, in addition to that he had an opportunity to do the mid-year review budget.

“The essence of the mid-year review budget is to tell us information about full-year 2019. He is today telling us about issues of 2019. You and I are interested in current issues because that is what will inform us,” he said.

As the crucial elections draw near, the opposition NDC has focused on what it says is the governing New Patriotic Party (NPP)’s poor management of the economy and has been urging voters to reject the NPP on December 7.