Ghana’s domestic debt now GH¢ 34.6 billion – BoG

Ghana’s stock of domestic debt stood at GH¢34.6 billion or 30.5 per cent of gross domestic product (GDP) at the end of 2014; up from GH¢26.7 billion (28.4 per cent of GDP) in 2013.

Dr Henry Kofi Wampah, BoG Governor, said external debt stood at $13 billion or 36.6 per cent of GDP at the end 2014, up from $11.5 billion or 26.9 per cent of GDP in 2013.

He said this brought the total public debt to GH¢76.1 billion or 67.1 per cent of GDP, up from GH¢51.9 billion or 55.3 per cent of GDP in 2013.

Dr Wampah made the disclosure on Wednesday during the Bank’s Monetary Policy Committee press briefing in Accra.

He said preliminary banking data on the execution of the Government Budget for 2014 indicated that total revenue and grants mobilised for the review period was equivalent to 16.6 per cent of GDP, higher than the 15 per cent recorded in 2013.

He said government spending, including arrears clearance, amounted to 23.6 per cent of GDP, slightly above the outlay of 23.2 per cent of GDP for 2013.

“These developments resulted in a narrow budget deficit equivalent to seven per cent of GDP.

“In the corresponding period of 2013, the narrow budget recorded a deficit equivalent to 8.3 per cent of GDP,” he said.

The Governor said the budget deficit was financed from both domestic and foreign sources, with the banking sector accounting for 57.7 per cent while the non-bank sector financed the remaining 42.3 per cent.

He said at the moment, a technical team from the International Monetary Fund (IMF) was in the country to assist the Bank in its operations, adding that the IMF bailout delegation would be in Accra this week to finalise arrangements for the programme.