Former President John Dramani Mahama has spoken out against the government’s borrowing practices during a recent meeting with members of the Ghana Union of Traders Association (GUTA). Mahama, who is also the flagbearer of the National Democratic Congress (NDC), lamented what he described as a “reckless borrowing spree” by the government in 2019.
Addressing GUTA members at their headquarters in Accra, Mahama highlighted the NDC’s concerns over the government’s borrowing activities, emphasizing that his party had been a lone voice in cautioning against the potential risks of excessive borrowing.
“In 2019, we sounded the alarm about the government’s reckless borrowing spree, which we believed would have adverse effects on the economy,” Mahama stated during his address. “Unfortunately, our warnings were not heeded, and now we are witnessing the consequences.”
Mahama pointed to indicators such as rising debt levels and budget deficits as evidence of the government’s irresponsible fiscal management. He argued that such practices could undermine Ghana’s long-term economic stability and jeopardize the welfare of its citizens.
“We cannot ignore the impact of unsustainable debt levels on our economy. It affects our ability to invest in crucial sectors such as education, healthcare, and infrastructure,” Mahama asserted.
The former president also criticized what he perceived as a lack of transparency and accountability in the government’s borrowing activities, calling for greater scrutiny and oversight to ensure that borrowed funds are used effectively for the benefit of the nation.
Mahama’s remarks come amidst growing concerns over Ghana’s debt sustainability and economic outlook. The country’s debt-to-GDP ratio has been on the rise in recent years, raising questions about its ability to service its debts without compromising essential public services.
In response to Mahama’s criticisms, government officials have defended their borrowing policies, arguing that they are necessary to finance infrastructure projects and stimulate economic growth. However, critics, including the NDC, continue to express reservations about the long-term implications of the government’s debt accumulation.
As Ghana prepares for presidential and parliamentary elections later this year, the issue of fiscal management is expected to feature prominently in the political discourse, with opposing parties offering contrasting visions for the country’s economic future.
GUTA members, many of whom are small business owners and traders, listened attentively to Mahama’s address, expressing concerns about the economic challenges facing their enterprises. The former president assured them of the NDC’s commitment to addressing their grievances and implementing policies that promote inclusive growth and development.
The gathering concluded with a lively exchange between Mahama and GUTA members, highlighting the significance of engaging with stakeholders on critical issues affecting the country’s economic well-being.
By Jeorge Wilson Kingson || ghananewsonline.com.gh