The COVID-19 pandemic has pushed Ghana’s deficit and debt to worrying levels, according to statistics outlined in the 2021 Budget Statement.
Presenting the Budget Statement in Parliament on Friday 12 March 2021, the caretaker finance minister, Osei Kyei-Mensah-Bonsu, said the current debt stock is GHC291.6 billion or 76.1% GDP, compared to 2016, when it was GHC122 billion (56.9% of GDP).
Describing what has accounted for the debts, the Majority Leader said the fiscal impact of COVID-19 has been GHC19.7 billion. The cost of the financial sector clean-up was GHC21 billion and GHC12 billion went to cover the cost of excess capacity charges paid to independent power producers (IPPs), he added.
“Without the aforementioned factors, debt stock would be targeting GHC238.9 billion, with 58.7% of GDP. The revision of the growth rate is from an average of 7% between 2017 and 2019 to 0.9% in 2020,” he said.
Between 2004 and 2008, Ghana’s debt stock increased by 30% under the second Kufuor-led New Patriotic Party government. Between 2008 and 2012 the debt stock jumped by 269% under the John Evans Atta-Mills-led National Democratic Congress government and then by 243% between 2012 and 2016 under John Mahama’s government.
Between 2016 and 2020, the country’s debt stock rose by 137% under the leadership of President Nana Addo Dankwa Akufo-Addo.
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