Fiscal indiscipline of government blamed for accumulating debt stock – Isaac Adongo
Member of Parliament for Bolgatanga Central constituency, Isaac Adongo has slammed the ruling New Patriotic Party over the rising debt stock blaming the government’s lack of fiscal discipline.
A Deputy Member of the Parliamentary Finance Committee said the reason why the government continues to give to Ghana’s economic chaos is not clear because other African countries are facing the same factors but are not in the same debt league as Ghana.
Speak in His gaze at Read TVMr. Adongo “said other African countries do not have debts like Ghana because they manage their fiscal space well to create buffers so that when problems arise, they have the scope to contain the problems.”
He added that Ghana was already spending more before the outbreak of COVID-19 and the Russia-Ukraine War which meant that an astronomical percentage of the country’s revenue was used to pay debts due to government indiscipline.
“By the time COVID-19 came, we had used 91 percent of our tax revenue to finance debt and we only had 9 percent to deal with other issues.
“In 2021, we are doing 129 percent of debt service for total revenue and funds, and that’s not about COVID-19 or the Russia-Ukraine War, but about the fact that we have mismanaged the fiscal until we have exceeded the fiscal risk.”
Ghana’s total public debt stock rose to GH¢575.7 billion at the end of November 2022.
Ghana is currently struggling with debt and the country will send a delegation to China in the coming weeks to ask for debt forgiveness while it works on a $3 billion financial facility from the International Monetary Fund (IMF).
The post Government fiscal indiscipline to blame for increasing debt stock – Isaac Adongo appeared first on Citinewsroom – Comprehensive News in Ghana.
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