The Member of Parliament (MP) for Tamale South, Haruna Iddrisu, has put forward a bold proposal to limit government borrowing to 70% of the Gross Domestic Product (GDP).
If accepted, this measure would significantly curtail the government’s capacity to acquire new debt.
During a debate on the budget allocation for the Finance Ministry, Haruna Iddrisu emphasized the need for vigilance in ensuring the well-being of all administrations.
He asserted, “This parliament must sit up and we must sit up to demand a feeling for good for all presidents and governments. I maintain that no president or government should be allowed to borrow beyond 70% of GDP.”
In addition to advocating for a borrowing cap, the former Minority Leader also urged for a thorough investigation into the Finance Ministry’s indebtedness to State-Owned Enterprises (SOEs). Specifically mentioning entities such as Ghana Gas, ECG, and NCA, he sought a forensic audit to determine the extent of the Ministry of Finance’s financial commitments to these organizations.
“I am asking for a forensic audit as to how much money the Ministry of Finance has held on state-owned agencies, Ghana Gas, ECG, NCA. Those of them who have other holding that the office of the Chief of Staff has taken money away from them. We need to know,” he said.
The World Bank reported that Ghana’s public debt escalated from 79.6% in 2021 to over 90% of GDP in 2022, with debt service-to-revenue ratio reaching 117.6%. This heightened level of indebtedness raises apprehensions about Ghana’s ability to meet its financial obligations and exposes the country to potential economic vulnerabilities.
