Akufo-Addo’s extreme borrowing sinking Ghana – Mahama

Former President John Dramani Mahama, has said the Akufo-Addo administration has been engaged in unprecedented borrowing in the last three and a half (3½) years, a situation he said has worsened Ghana’s public debt stock.

Mr Mahama said on Monday September 7 during the launch of the manifesto document of the National Democratic Congress (NDC) for this year’s elections, that Ghana increased its debts servicing and worsened its debt sustainability.

“The NPP Government has increased Ghana’s public debt from GH¢120.30 billion in 2016 to about GH¢258.4 billion as at end-June 2020".

“Under the NPP the public debt is projected to increase to GH¢290 billion by end-December 2020 (2020 Mid-Year Budget Review), with an addition of about GHC170 billion to the public debt stock in the last four years, with very little to show for it".

“The public debt stock as a share of GDP increased from 56.8 per cent in 2016 to 67 per cent as at end-June 2020 and projected at 75.8 per cent of the rebased GDP by end-December 2020".

“As a demonstration of the incompetence of the failed Akufo Addo Government and his economic management team, the public debt as a share of GDP deteriorated from 57 per cent to 67 per cent further within one and a half years between 2018 and June 2020".

“Debt service increased from GH¢16.13 billion in 2016 to a projected value of GH¢38.5 billion by end December 2020".

“Debt service as a share of domestic revenue increased from 51.9 per cent in 2016 to a projected value of 73.5 per cent by end December 2020, while debt service as a share of total expenditure increased from 32 per cent in 2016 to a projected value 39.4 per cent by end December 2020,” he said.