NDC added 32.75% to Ghana’s debt stock opposed to the modest 10.68% by the NPP – Danquah Institute

A development economist and the Head of Research at the Danquah Institute, Dr. Frank Bannor, says the stark rate of debt accumulation reveals that on average, the NDC government added 32.75% to Ghana’s debt stock each year between 2009 and 2016 as opposed to the modest 10.68% the NPP government added to the debt stock from 2017 to date

Addressing the press at the Danquah Institute on 17 April 2024, he said “The NDC government added 32.75% debt to Ghana’s debt stock every year

between 2009 to 2016. This trajectory, was even worst between 2012 to 2016. The public debt which stood at $15.3 billion in 2011, increased to $29.2 billion by the end of 2016, indicating a growth rate of 90.85% from 2012 to 2016. Friends from the media, this astronomical increase in the debt stock represents one of the worst managements of the public debt in recent times. The public debt which stood at $29.2 billion in 2016 has increased to $51.04 billion as at the end of 2023. Contrary to public perception, this marks a little over one and half increase in the overall public debt stock under the NPP. This rate of change, represents an increase of about 74.79% in the total public debt stock, compared to a growth of 262% from 2009 to 2016. Unlike the trajectory between 2009 to 2016, the NPP on average, has added about 10.68% to Ghana’s debt stock every year between 2017 to date. A rate far lower than the 32.75% witnessed under the NDC.”

Dr. Bannor also explained that the highest revenue and grants received by any government was under the National Democratic Congress administration in 2012 but saw an astronomical deficit that same year.

“Contrary to this misconception, the available data from the Ministry of Finance proves otherwise. In fact, the highest total revenue and grants as a percentage of GDP received by any government within the last 15 years was recorded in 2012, reaching 20.9% of GDP under the NDC!!. Astonishingly, this was the same year that a fiscal deficit of 11.6% of GDP was recorded. 83.Contrary, the highest revenue and grants as a percentage of GDP so far recorded under the current government is 15.8% in 2022” part of the statement reads a comprehensive data on loans signed since the NPP government assumed power in 2017 to 2022, and the projects it has been used for has been provided below by the Danquah Institute.”

Loans Signed in 2017 – $506 million