Government is borrowing to settle your debts – Finance Minister to Mahama

Government have issued out a strong defense after Former President John Dramani Mahama indicated during an economic forum on September 6th, 2021 that the New Patriotic Party led government is borrowing too much.

The government have defended it’s excessive borrowing over the years by revealing that the monies are meant to settle debts incurred by the John Mahama during his tenure as President.

Ghana’s current debt stock stands at over GHC300 billion, with the IMF warning the country to put measures in place to reduce the debts.

According to Ghanaontheglobe.com report, the Deputy Minister of Finance, John Kumah during a media interview insinuated that the government is in an era of Covid-19 where every country is struggling including developed countries.

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Responding to John Mahama’s statement during his recent forum that the Akufo-Addo government is borrowing recklessly, John Kumah said,

“…if he talks about increases in borrowing, yes we have seen that but much of this borrowing went to address the debts he [John Mahama] left behind, the take or pay contracts he signed in the energy sector and the billions that we have paid. We spent about 25 billion cedis trying to save the banks.

“So, if we have borrowed, we have borrowed because he plunged this country into a very difficult situation that we needed to redeem. And that we have done and have shown competence in the management of this country.”

Source: Ghanaontheglobe.com