My Gov’t will limit how much Ghana borrows   –  John Mahama

Presidential candidate of the National Democratic Congress (NDC) John Dramani Mahama has promised that when he becomes President, he will limit how much  Ghana can borrow by enacting or amending laws to place a ceiling on the amount the country can borrow relative to its Gross Domestic Product(GDP).

He explained that the Public Financial Management Act will be amended to restrict the amount of money Ghana can borrow from external creditors to a certain percentage of GDP.

 Addressing a rally in  Dodowa in the Greater Accra Region as part of his campaign on yesterday[ September 16, 2024], John Mahama also pledged to make Ghana’s Debt Management transparent.

“…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 who are sitting here,” he pledged.

The issue of Ghana’s public debt has always been a major political topic in the Fourth Republic. Political parties have always lamented Ghana’s huge indebtedness to its international development partners and creditors but have always had to borrow some more when they take over the reins of power.

The New Patriotic Party (NPP), prior to winning the 2016 General Elections, had chastised the then National Democratic Congress(NDC) led by John Mahama for unbridled borrowing. But upon coming into power, they have increased the country’s debt massively.

Ghana relies on debt to run its economy given that production is low and taxation doesn’t raise enough revenue to cater for the country’s needs.

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