ISSER: Ghc70b debt stock must be tackled drastically

The Institute of Statistical Social and Economic Research, ISSER, has called for drastic measures in tackling Ghana’s rising public debt stock.

Finance Minister Seth Terkper on Wednesday announced to Parliament that Ghana’s total public sector debt stock increased from Ghc65.7 billion as of the end of August, to Ghc70 billion as of the end of September.

Economic Analysts have expressed worry that the soaring debt stock could plunge the country into a highly indebted poor country status again.

Director of ISSER, Professor Felix Asante said: “…You cannot have a country where your debt is so high. We are not alone in this world. The country’s profile is at stake when we are going for other loans – talk about the Eurobond, talk about all other loans – so all these are indicators that we need to put right…we need to put our act together…”

Prof Asante added that as part of efforts to tackle the rising debt profile, “our macro indicators need to be right.”

“…Our macro indicators have a lot of relationship with our fiscal development, and Government’s expenditure is high, we all know it has to be controlled. And for you to control your government expenditure, you should be able to make sure that your spending matches with what you earn.

“We need to have a balance. You cannot spend what you don’t have. And that is the first step. Once we work on that, other macro indicators will have to fall in place. We try and diversify our exports that will also help, so we need to put our macro indicators in the right order and other private sector will flourish, businesses will flourish…” he explained.