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Akufo-Addo’s extreme borrowing sinking Ghana – Mahama

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Former President John Dramani Mahama, has said the Akufo-Addo administration has been engaged in unprecedented borrowing in the last three and a half (3½) years, a situation he said has worsened Ghana’s public debt stock.

Mr Mahama said on Monday September 7 during the launch of the manifesto document of the National Democratic Congress (NDC) for this year’s elections, that Ghana increased its debts servicing and worsened its debt sustainability.

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“The NPP Government has increased Ghana’s public debt from GH¢120.30 billion in 2016 to about GH¢258.4 billion as at end-June 2020.

“Under the NPP the public debt is projected to increase to GH¢290 billion by end-December 2020 (2020 Mid-Year Budget Review), with an addition of about GHC170 billion to the public debt stock in the last four years, with very little to show for it

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The public debt stock as a share of GDP increased from 56.8 per cent in 2016 to 67 per cent as at end-June 2020 and projected at 75.8 per cent of the rebased GDP by end-December 2020.

“As a demonstration of the incompetence of the failed Akufo Addo Government and his economic management team, the public debt as a share of GDP deteriorated from 57 per cent to 67 per cent further within one and a half years between 2018 and June 2020.

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Debt service increased from GH¢16.13 billion in 2016 to a projected value of GH¢38.5 billion by end December 2020.

“Debt service as a share of domestic revenue increased from 51.9 per cent in 2016 to a projected value of 73.5 per cent by end December 2020, while debt service as a share of total expenditure increased from 32 per cent in 2016 to a projected value 39.4 per cent by end December 2020,” he said.

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