Gov't to blow GHC1.8bn on loan interests

The Government of Ghana will spend GHC1.8 billion on loan interests alone in the first-quarter of 2017, MP for the New Juaben South constituency, Dr Mark Assibey Yeboah has said.

Parliament on Thursday, 20 October approved a request of GHC10.9 billion from government for the first-quarter of next year to help finance critical government expenditure after this year’s elections.

The approval was given on the recommendations of the Finance Committee of Parliament. The request was made according to Article 180 of the 1992 Constitution and Section 23 of the Public Financial Management Act, 2016 (Act 921).

Apart from spending close to GHC2billion of loan interests, GHC2.3billion will also be spent on grants while GHC3.8billion will go into paying public sector workers.

The Finance Ministry says it intends raising GHC8.9 billion for the period – the chunk of it (GHC7.2billion) – will be from taxes ranging from income and property tax to international trade taxes while non-tax revenue is expected to be GHC1.1 billion.

Dr Asibey Yeboah said on the floor of the house during the debate on the budget that saddling the next government in 2017 with nearly GHC2billion in terms of payment of interests on loans is not prudent.