The Member of Parliament for Tamale South, Haruna Iddrisu, has proposed for cap to be placed on government borrowing beyond 70 percent of Gross Domestic Product (GDP).
He argued that the current economic crisis is due to excessive borrowing by government which has impacted on the country’s debt sustainability levels.
Speaking during a debate in Parliament on the budget allocation for the Finance Ministry, the Tamale South MP said a cap of 70 percent of GDP will ensure that government is limited on its ability to take on new debt from borrowing.
“This parliament must sit up and we must sit up to demand a feeling for good for all presidents and governments. I maintain that no president or government should be allowed to borrow beyond 70% of GDP,” he said.
The former Minority Leader in Parliament also called for a forensic audit into the indebtedness of the Finance Ministry to State Owned Enterprises (SOEs).
“I am asking for a forensic audit as to how much money the Ministry of Finance has held on state-owned agencies, Ghana Gas, ECG, NCA. Those of them who have other holding that the office of the Chief of Staff has taken money away from them. We need to know,” Haruna Iddrisu advocated.
At the end of 2022, Ghana’s public debt increased from 79.6% in 2021 to over 90% of GDP as debt service-to-revenue also reached 117.6%, according to the World Bank.
The situation forced Ghana to turn to the IMF for a 17th time to restore macroeconomic stability and address high debt sustainability issues which placed the country in a difficult position to honor its debt obligations.
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Haruna Iddrisu, MP for Tamale South