Member of Parliament (MP) for Tamale South, Haruna Iddrisu has presented an audacious proposal to limit government borrowing to 70% of GDP.
If enacted, this step would severely limit the government’s capacity to incur additional debt.
“This parliament must stand, and we must stand, to demand that all presidents and governments feel good.” “I maintain that no president or government should be allowed to borrow more than 70% of GDP,” he stated during a Finance Ministry budget allocation debate on Thursday.
In addition to suggesting a borrowing limit, the former Minority Leader asked for a forensic assessment of the Finance Ministry’s debt to State Owned Enterprises (SOEs).
He specifically identified Ghana Gas, ECG, and NCA as institutions to which the Ministry of Finance may be indebted.
“I am requesting a forensic audit to determine how much money the Ministry of Finance has held on state-owned entities such as Ghana Gas, ECG, and NCA.” Those who have other jobs claim that the Chief of Staff’s office has stolen money from them. “We need to know,” he explained.
Ghana’s public debt increased from 79.6% of GDP in 2021 to over 90% of GDP in 2022, according to the World Bank, with debt service-to-revenue reaching 117.6%.
This level of debt casts doubts on Ghana’s capacity to repay its debts and makes the country vulnerable to economic shocks.
