The Deputy Finance Minister, Dr John Kumah, has conceded that government might have over-borrowed in its quest to transform the economic fortunes of the country.
According to him, it is not wrong for a nation to accrue debt in its developmental journey, however, borrowing must be done judiciously.
When asked on Joy FM’s Super Morning Show to give an example of a flawed initiative of the government, Dr Kumah said, “Maybe the levels of borrowing have been too much and that could be one of the areas.
“Maybe we should have looked at more alternatives at financing our various programmes but of course, every nation is built on debt, it is what you do with it and what happens [that matters],” he said on Monday.
In government’s defence, the Deputy Finance Minister said the borrowing was done in the interest of Ghana until Covid-19 sent all plans downhill.
“I know we are where we are because, if you borrowed in 2017, 2018 and 2019, $3 billion of investment each year and you were expecting the returns after 2020 and Covid-19 struck, and brought your economy to almost zero, it means that you are already in a very difficult situation.
“So this is the reality of what happened, it’s not like we borrowed and did things that didn’t benefit the country,” he said on Wednesday.
Ghana is currently experiencing a debt distress. This has forced the country to launch a Domestic Debt Exchange programme as a solution to the current economic woes, while it pursues a lifeline support from the IMF.