The sustainability of the debt, how Ken Ofori-Atta managed it in the last four years compared to the situation before the New Patriotic Party (NPP) assumed office is sharply in focus. Oftentimes, public debt arises when government spending is more than its revenue and therefore borrows either domestically and/or externally to close the gap. Government budgets capture their spending plans against expected revenue on yearly basis and at all times account for legacy debts of past governments too. As a result, a previous government legacy debts must always be carried on by a new government as arrears – which is well captured by the adage Government is a continuum.
Ken Ofori Atta – Finance Minister Ghana
The announcement by the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) that the public debt stock as at the end of November 2020 has risen to GH¢286.9 billion is once again the subject of public debate about prudent management of the public debt stock.
The figure represents 74.4% of Ghana’s Gross Domestic Product (GDP).
The sustainability of the debt, how Ken Ofori-Atta managed it in the last four years compared to the situation before the New Patriotic Party (NPP) assumed office is sharply in focus.
Oftentimes, public debt arises when government spending is more than its revenue and therefore borrows either domestically and/or externally to close the gap.