Former Member of Parliament for Tamale Central Constituency, Inusah Fuseini has predicted hard times in the coming days due to the country’s current debt to Gross Domestic Product (GDP) ratio.
The country’s debt stock which ended the first quarter of 2021 at Ghc304.6 billion, increased by almost Ghc30 billion in April and May. This saw Ghana’s total public debt as of the end of May 2021 rising to Ghc 332.4 which brought Ghana’s GDP ratio to 76.6 as of the end of May, being the highest recorded in the past year.
It is against this backdrop that Mr. Fuseini believes the government relies on Eurobonds for funds. He remarked that Ghana is approaching the debt distress level and with that, the country cannot be properly developed.
According to him. The economy under the John Dramani Mahama was not as dire as it is today under the Nana Addo-led government.
“We have eaten the meat to the bone in fact, we ate the meat in John Dramani Mahama’s tenure of office and chewing the bone now, the economy is so difficult. The hardship is so manifested and profound”, he stated.
Mr. Fuseini who spoke on ‘Day Break Upper East’ show on A1 RADIO, predicted an increase in taxes and the introduction of new taxes in the 2022 budget as another source of funds to the government.
Adding that “the government has borrowed Ghc 350billion as a total debt of this country. The government intends in the 2022 budget to continue to float Eurobonds to raise the capital market. So, by the end of 2022, our debt profile might reach Ghc 4billion. The government needs money and I don’t see how they are going to get money by reducing taxes. I’m expecting that taxes may go up and new taxes may come on a trip”.
Source: A1Radioonline.com|101.1Mhz| Quansah Diana
