Ghana Politics

Government increased public debt by 50 billion cedis in nine months – John Jinapor

The member of parliament for Yapei Kusawgu and member of parliament’s Mines and Energy Committee, John Abdulai Jinapor has revealed that government has increased the public debt by 50 billion cedis  in just nine months.  

According to him, the Nana Akufo Addo led government is only interested in borrowing to consume despite the struggling state of the economy. In debating the 2022 budget on the floor of parliament, he averted the minds of Ghanaian back to the 2021 budget on how government mismanaged the economy even though Ghanaians made sacrifices in 2021. He explained by sating that the sacrifices include the merger 4% increase in salary, increase in taxes and the covid 19 levy, however “in just nine months the public debt has increased by 50 billion cedis, today when we collect our tax revenues it can’t even satisfy debt serving and then wages and salaries that is the true state of the economy. How families will put 3 squad meals on the table is a major issue”.

The public debt sector debt as at September 2021 was GH 341.76 billion. Moving the debt to GDP Ratio to 77.5%.

The MP blamed the woes of the country on the vice president and his economic management team. Revealing that the minority warned and called on the Head of the Economic Management team to be careful of the rate public debt and the deficit but they paid no hid to it. Addressing the speaker of parliament he said “we are not here by accident, we are here because the economic management team led by Dr. Mahamud Bawumia has demonstrated a clear sense of incompetence, if you look at the figures we cautioned them, we told them about borrowing, we told them about the deficit they insisted that they will do better. I think that the time has come for the president to consider doing the noble thing by dissolving the economic management team and getting a competent team in managing this economy”.

Moving onto the 2022 budget, he said it can never be a savior to the challenges confronting the country. Adding that the 2022 budget is worse than the 2021 budget in revenue generation and expenditure. “They are seeking to raise tax revenue from 55 billion cedis to 80 billion cedis, what it means is that they want to increase our tax base by 45%, total revenue is estimated at 100 billion cedis”.

An additional minimum of 15% charge from government service is as a result of the obnoxious target set by the finance minister in the 20222 budget. These include passport, birth certificates among other services.

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