Business News of Wed, 6 Jun 20188

Minority accuses government of high GHC150 billion debt stock

The Minority in parliament has accused government of excess borrowing explaining that Ghana’s public debt stock is almost 150 billion cedis. In addition, the Minority has condemned the New Patriotic Party (NPP) government over what they said was a staggering GHC 28 billion of the debt being accrued within 12 months.

The Minority in parliament has accused government of excess borrowing explaining that Ghana’s public debt stock is almost 150 billion cedis.

In addition, the Minority has condemned the New Patriotic Party (NPP) government over what they said was a staggering GHS 28 billion of the debt being accrued within 12 months.

“The public debt as at 31st December 2016 was GHS 122.3 billion. Mr Speaker, as at 31st December 2017 the public debt increased to GHS 142.6 billion. Mr Speaker, indeed, this amount excludes the Energy bond that was recently issued of GHS 4.7 billion and the UT/Capital bond of about GHS 2.3 billion. So, Mr Speaker, if you are to add this UT/Capital Bond and Energy Sector Bond, the public debt as accrued for the year 2017 would be GHS 49.6 billion approximately GHS 150 billion,” Ranking Member of the Finance Committee of Parliament, Cassiel Ato Forson, said during the debate of the annual report on the management of the Energy Sector Levies and accounts for 2017.

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However, Chairman of the Finance Committee, Dr Mark Assibey-Yeboah said Mr Forson was misleading the House.

According to him “The UT/Capital Bond was issued in 2018 so why are you adding 2018 debt to 2017 debt while we are debating 2017”.

In response, Mr Forson stressed that: “There is a difference between accruals and cash” and that he was referring to accruals.

But Dr Assibey-Yeboah maintained that the “69.8 percent debt-to-GDP ratio that we have now is the state of our public debt and as a matter of fact we have brought it down from 73.1percent which you (National Democratic Congress) left”

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