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Former President John Mahama says Ghana’s debt has got to unsustainable level due to government’s reckless expenditure to win elections.
“This government must accept that it is their mismanagement of the economy, their thirst for consumption expenditure and the desire to spend beyond our means in order to win elections that have plunged us into the current crisis, not necessarily COVID-19.
“This has led to rampant increments in the prices of goods and services. This is primarily responsible for the hardships Ghanaians are going through now,” Mr Mahama wrote on twitter on Saturday morning.
He added: “Our debt has ballooned to unsustainable levels- topping 80% of GDP- exposing us to very high risk of debt default. Almost all of our tax revenue is used to service our debt and the effect has been the introduction of several new taxes”.
In April and May 2021, Ghana’s public debt stock shot up by ¢27.8 billion to ¢332.4 billion which was equivalent to $57.9 billion, about 76.66 percent of Gross Domestic Product.
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Source: GhArticles.com
