NPP Minority Accuses Mahama Government of Excessive Borrowing in First Two Months

The NPP Minority in Ghana’s Parliament has alleged that the Mahama-led Government borrowed GH¢73 billion in two months. Additional borrowing is expected to increase this figure to GH¢79 billion. There are concerns about a potential total debt of GH¢200 billion by year-end, and discrepancies with previous government borrowing practices are also highlighted.

The Minority in Parliament, representing the New Patriotic Party (NPP), has accused the Mahama administration of incurring debts amounting to GH¢73 billion within two months of taking office, which commenced on January 7, 2025. Dr. Gideon Boako, the MP for Tano North, announced during the Minority’s True Budget Statement that further borrowing is anticipated, with Finance Minister Dr. Cassiel Ato Forson set to acquire an additional GH¢6 billion from the domestic capital market, raising the total to GH¢79 billion.

Dr. Boako expressed concerns regarding the government’s rapid borrowing pace, suggesting that if this trend continues unchecked, total borrowing could reach GH¢200 billion by the year’s end. He contrasted this with the previous administration under President Akufo-Addo, which he noted had only borrowed GH¢15 billion upon taking office in 2017.

Additionally, Dr. Boako criticized the GH¢2.7 billion allocated for budget compensation to the Office of the Government Machinery (OGM), claiming this figure significantly exceeds the previous NPP government’s 2024 allocation of GH¢326 million. He also found it remarkable that GH¢78.8 million has been earmarked for Government Communications, surpassing the budgets of four ministries from the former administration while GH¢50 million has been dedicated exclusively to the Research Department of the OGM.

Dr. Mohammed Amin Adam, former Minister of Finance and MP for Karaga, characterized the current ruling National Democratic Congress (NDC) government’s fiscal narratives as deceptive. He accused them of employing underhanded tactics to distort financial data, claiming these actions support unfounded allegations regarding the economic conditions inherited from the previous NPP administration. He referred to this as a “carefully crafted strategy” aimed at bolstering a narrative perpetuated by the government, especially during the State of the Nation address and reiterations at various economic dialogues.

In summary, the NPP Minority has raised serious allegations against the Mahama government regarding its aggressive borrowing strategy, asserting a staggering GH¢73 billion has been borrowed within two months. Concerns were also expressed about the potential for overall debt to reach GH¢200 billion by year-end, while comparisons to previous government borrowing practices cast doubts on the current administration’s fiscal management. The dialogue reflects broader issues of budget allocations and data integrity in fiscal reporting.

Original Source: www.ghanabusinessnews.com