Mahama describes government’s high rate of borrowing as a ‘tragedy’

Former President John Dramani Mahama says the rate at which the NPP administration is borrowing is a ‘tragedy’ that is putting the lives of the next generation in great danger.

He explained that these debts are going to be paid by the next generation, therefore, he is urging the youth to rise up in concern against the government.

Mahama told TV XYZ on Sunday that Ghana’s debt has increased from GH¢120.3billion in December 2016 to GH¢236.1 billion as of March 31, 2020.

“A lot of these debts are not going to be paid by this generation, they are going to be paid by our children and our children’s children. And so, the young people must be concerned about the rate at which the government borrows,” Mahama stated. “The tragedy is that the rate of borrowing and the money that has been added to the public purse, one will expect that you will see much improvement. One, items of social and economic infrastructure and two, items of economic prosperity but that hasn’t happened”.

Mahama stressed again that there are no commensurate results to show despite these borrowings.

“People feel more economically disadvantaged today than they did in the past. People don’t see any new development. I mean, we don’t see the schools, we don’t see the hospitals, we don’t see [the] extension of electricity; indeed, this government in the four years has added just 1 per cent of electricity access, [and with] water access we are in danger of falling back,” he noted.

The NDC flagbearer meanwhile justified the GH¢54billion borrowed under his administration.

According to him, the money was used to “expand the ports, we built railways, we did roads, we built schools, we did hospitals, we extended water, we extended electricity and people physically see what that money was used for. Unfortunately in this case, you don’t see anything.”

He went on: “The question is that ‘what do they have to show for the money they borrowed?’. They borrowed three times more than I did in my time...When you ask them, they say Free SHS but free SHS is not funded from borrowing. That is the mistake they make. It is funded from our share of oil revenue. So, it can’t be the cost of GH¢140 billion. What has happened is this government has borrowed for consumption and that is the tragedy.”