This author has discovered through months of research that before Ghana reported its first incidence of the COVID-19 pandemic in March 2020, the nation's economy had fallen precipitously. In fact, Ghana's public debt had risen to GHS225 billion in 2019 from GHS120 billion in 2016, an increase of 125 percent. This exceeded approximately 105 billion GHS in Ghana's debt stock.
Prior to the outbreak of COVID-19, the country's debt to GDP ratio increased from 56% in 2016 to approximately 70% in 2019 during the same time frame. Not only that, but this author also discovered that our debt servicing costs increased from GHS11 billion in 2016 to GHS37 billion in 2019 before the pandemic.
This represented a 91% increase in tax revenue. During the period in which the pandemic ravaged the globe, almost every aspect of the Ghanaian economy had inexplicably deteriorated. This included the fact that our budget deficit surpassed the legally accepted threshold of 5% in 2018 and 2019, reaching 7.5% and 7%, respectively.
According to a number of analysts, the current administration did not overlook such realistic data. Why, then, would the President lead the chorus that Ghana's economic difficulties began immediately after the uninvited COVID-19 guest's visit? This is what President Akufo-Addo stated in his State of the Nation Address (SONA) for March 2023.
the COVID-19 factor in Ghana's economic difficulties to Ghanaians.
The President of the Republic told Ghanaians, "Perhaps due to the severity of the current difficulties, or perhaps because it fits their preconceived agenda, some people are unwilling to accept that we were on a positive trajectory prior to the arrival of COVID-19." Pierre Laporte, Country Director of the World Bank, exposed the alarming rate at which Ghana's economy was deteriorating at the time of the evident manipulation of Ghana's worsening economic situation.
As a result of the global response to countries, including Ghana, that were hardest hit by the pandemic, the World Bank felt almost obligated to grant Ghana $1 billion to fight and combat the disease. In excess of half a billion Ghanaian Cedis were generated domestically to supplement the Bretton Woods donation to Ghana. Former Chief Justice Sofia Akufo presided over this committee.
In addition, Ghanaians continue to pay COVID-19 levies to this day. In his 2021 report, the Auditor General revealed how COVID-19 funds were misappropriated by government officials, ministries, and agencies (MDAs). Although some government officials dismissed the Auditor General's report, they neglected to provide supporting evidence. As is typical for such findings, the Auditor General's findings on COVIC-19 expenditure and other misdeeds in other public offices leave many questions unanswered.
In his report on the topic, the Auditor General emphasized that only GHC11.7 billion of the total COVID amount was spent on the pandemic, while the remaining GH18 billion was used to sustain Ghana's budget. In their "True State of the Nation" press conference, the opposition National Democratic Congress (NDC) questioned the administration's rationale for covering up its poor economic management with COVID-19.
"There is no denying that the coronavirus pandemic affected every country on earth, including our neighbors in Benin, Togo, Côte d'Ivoire, Burkina Faso, and Nigeria." The Akufo Addo/Bawumia administration borrowed excessively and spent recklessly for election purposes, resulting in a disastrous deficit of 15.7% and a debt to GDP ratio of approximately 80% in 2020, according to Johnson Aseidu Nketia, the national chairman of the NDC.
In addition, he stated, "It is instructive to observe that in 2020, when COVID was at its height, all of our neighbors had a budget deficit of less than 8%. Burkina Faso recorded a 5.7% deficit; Cote D'Ivoire recorded a 5.6% deficit; Nigeria recorded a 5.8% deficit; and Senegal recorded a 6.4% deficit. But Ghana alone recorded a deficit of 15.7% due to the Akufo Addo-Dawumia NPP government's irresponsible election-related spending and waste."