Public debt now US$7.841.3 million

Accra, Aug. 25, GNA - Ghana's public debt now stand at US$7,841.3 million, Dr. Kwabena Duffuor, Minister of Finance said on Tuesday. "Ghana's public debt stood at about US$8,073.3 million as at the end December, 2008 in spite of the substantial debt relief from both our multilateral and bilateral partners, he said.

"As a result of prudence in management of loans, we have reduced the stock of debt to US$7,841.3 million as at end June, 2009," he told Parliament during the presentation of a supplementary budget. The budget, intended to seek Parliamentary approval for more state funds to run the economy, reviews the performance of the economy between January and June 2009.


Dr. Duffuor said even though Government had contracted loans during the six-month period, the borrowing had been driven more by need and financial prudence, adding that most of the loans had been secured on concessionary terms.


The Minister also reported that overall budget balance, including divestiture, amounted to a deficit of GH¢965.4 million, equivalent to 4.5 percent of GDP, against a target deficit of GH¢1,400.3 million, equivalent to 6.5 percent of GDP.


The outturn compares with a deficit equivalent to 5.8 percent of GDP recorded during the corresponding period in 2008. He noted that there was equally a marked improvement in domestic effort in budget implementation, indicating that the nation's finance was now in skilful hands.


"The domestic primary balance for the period under review, January to June 2009, was a deficit equivalent to 0.8 percent of GDP, against a target of 3.2 percent of GDP.

"The outturn compares with a deficit of 3.6 percent of GDP recorded during the corresponding period in 2008.


"This indicates much improvement in the domestic effort in budget implementation, a clear indication that the nation's finances are now in skilful hands," he said.


Dr Duffuor said the overall budget deficit including divestiture, was financed from both domestic and foreign sources, adding that Net Domestic Financing of the budget amounted to GH¢634.2 million, equivalent to 2.9 percent of GDP compared to 3.8 percent of GDP for the same period in 2008.


"Financing from foreign sources totalled GH¢331.2 million, equivalent to 1.5 per cent of GDP," he said.