Professor of Finance at the University of Ghana, Godfred Bokpin, has criticized the Ghanaian government’s management of borrowed funds over the past eight years, arguing that there is little to show for the increased public debt.
Speaking on “Newsfile” on Saturday, Prof. Bokpin highlighted that despite the significant rise in public debt, the government has not effectively utilized these funds, particularly during crises such as the Covid-19 pandemic. His comments came in response to Deputy Finance Minister Dr. Stephen Amoah’s defense of the Finance Minister’s mid-year budget review presentation.
“If we say no government has borrowed like this government, of course, the size of the economy has not remained the same compared to those other regimes. But if you look at the amount of debt this government has accumulated in the last seven and a half years or so, and you look at the real assets, the underlying assets that we have generated, I don’t think we have been prudent,” Prof. Bokpin stated.
During a press briefing on July 1, Finance Minister Dr. Mohammed Amin Adam asserted that Ghana’s economy is showing strong signs of recovery. He noted that the positive economic indicators for the first quarter of 2024 suggest a favorable outlook for the remainder of the year.
“Growth, as we’ve heard from the previous two distinguished speakers, is proving to be more resilient and robust than initially programmed, and the economy continues to show strong signs of recovery, particularly in the first quarter of 2024,” Dr. Adam said.
He emphasized that the macroeconomic environment remains stable, with the government continuing to implement the IMF-supported programme.
“The results were remarkable. Overall real GDP growth for quarter one 2024 was 4.7%, the highest since quarter one of 2022. This growth performance is better than the 3.1% growth recorded in the same period in 2023,” he added.
Source: Norvanreports