Dr. Frank Bannor
Policy think tank, Danquah Institute (DI), has stated that the ruling New Patriotic Party’s (NPP) record in governance has always resulted in superior debt management than the opposition National Democratic Congress (NDC).
According to the Institute, Ghana’s debt climbed to $29.2 billion between 2009 and 2016, representing 261.83% growth in total public debt stock under the NDC, greatly exceeding the debt stock recorded under the NPP administration.
Dr. Frank Bannor, Head of Research at DI, stated this at a media engagement in Accra yesterday, describing the NDC as one of the worst public debt management administrations in recent years.
Using data from the Bank of Ghana and the Ministry of Finance, he revealed how the public debt rose from $8.07 billion in 2008 to $29.2 billion by 2016, representing a more than threefold rise.
Dr. Bannor emphasised that between 2009 and 2016, the NDC government added 32.75% of new debt to Ghana’s debt portfolio annually on average.
He added that the years 2012 to 2016 had an even worse trajectory, noting that the public debt grew at a rate of 90.85% between 2012 and 2016, reaching $29.2 billion by the end of 2016. It was $15.3 billion in 2011.
He noted that the rise of Ghana’s public debt from $29.2 billion in 2016 to $51.04 billion at the end of 2023 only represents a little more than a one-and-a-half growth in the whole public debt stock under the NPP administration.
“Ghana witnessed a remarkable decline in our public debt to GDP ratio from 182% in 2000 to 32% by the end of 2008.
“The public debt, which was recorded at $8.07 billion in 2008, skyrocketed to $29.2 billion by 2016, indicating a more than threefold 3 increase,” he stressed.
He stated that, in contrast to the debt stock recorded under the NDC administration between 2009 and 2016, the NPP added only roughly 10.68% to Ghana’s debt stock per year from 2017 to present, significantly less than the 32.75% witnessed under the NDC.
Dr. Bannor added that the $29.2 billion in public debt recorded in 2016 would be comparable to around GH¢380 billion now if no extra borrowing had occurred.
“Contrary to popular belief, the present administration has demonstrated prudent management of expenditure compared to the previous NDC government. For instance, the highest government expenditure as a percentage of GDP, reaching 26.8%, was observed in the fiscal year ending 2012.
“In contrast, the highest expenditure-to-GDP ratio recorded under the current government was 24.6% in 2020,” he pointed out.
The development economist underlined the Institute’s commitment to providing constant insight into Ghana’s debt situation in order to address any gaps caused by the NDC’s misinformation and propaganda.
By Ebenezer K. Amponsah