John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has made a bold promise to tackle Ghana’s borrowing and debt transparency issues if elected in 2024.
Mahama vows to amend the Public Financial Management Act to set a cap on external borrowing, ensuring that Ghana’s debt-to-GDP ratio doesn’t spiral out of control.
Speaking at a gathering in Dodowa, Shai-Osudoku constituency, as part of his Greater Accra regional campaign, Mahama emphasized the need for transparency in Ghana’s debt management.
He noted that the current system lacks transparency, with the country’s debt-to-GDP ratio only being revealed during the budget reading by the Minister of Finance.
Mahama promised to change this by establishing an autonomous Debt Management Authority within the Finance Ministry.
This authority will be mandated to publish quarterly updates on Ghana’s debt-to-GDP ratio, providing much-needed transparency and accountability.
Furthermore, Mahama plans to amend the Public Financial Management Act to include a clause that caps the amount of money a Finance Minister can borrow.
This move aims to prevent excessive borrowing and ensure that Ghana’s debt remains sustainable.
Mahama explained that the current system allows Finance Ministers to borrow excessively, leaving a massive debt burden for future generations.
By capping borrowing at 60% of GDP, Mahama hopes to prevent this from happening.
“We will change parts of the Public Financial Management Act and put a clause there on how much money a Finance Minister can borrow.
So, if we agree that we should not borrow more than 60% of GDP, then we will put it in the Public Financial Management Act so that no finance minister can come in future and borrow money as badly as he wants and leave a debt for the young people,” Mahama stated.
Mahama’s proposals are part of his broader vision for Ghana’s economic development. He believes that by addressing the country’s borrowing and debt transparency issues, Ghana can achieve sustainable economic growth and development.
The NDC flagbearer’s promise to tackle Ghana’s debt challenges has been welcomed by many, who see it as a crucial step towards ensuring the country’s economic stability.
With Ghana’s debt-to-GDP ratio currently above 80%, many experts agree that urgent action is needed to address the situation.
Mahama’s plan to establish an autonomous Debt Management Authority and amend the Public Financial Management Act is seen as a positive move towards achieving this goal.
By providing transparency and accountability in debt management, Ghana can ensure that its debt remains sustainable and its economy remains strong.
As the 2024 elections approach, Mahama’s proposals on debt management are likely to be a key issue of discussion.
Ghanaians will be watching closely to see how the various political parties plan to address the country’s debt challenges and ensure sustainable economic growth.
