Govt using borrowed funds prudently — Danquah Institute
The Danquah Institute says its analysis has proven that the governing New Patriotic Party (NPP) has "prudently" channelled borrowed funds into all sectors of development.
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It further stated that despite misconceptions, the funds had been deployed "judiciously", with tangible evidence validating their allocation.
Addressing the second edition of the institute's monthly encounter with the media in Accra dubbed "Profiling & Analysis of Ghana’s Debt from 2009 to 2023", a development economist and Head of Research of the Danquah Institute, Dr Frank Bannor, noted that within the local commentary, contrasting viewpoints had emerged and that it was necessary to explain the country's debt situation.
Dr Bannor said while one perspective attributed Ghana's mounting debt to factors such as corruption, incompetence and mismanagement, COVID-19, Russian-Ukraine War and excess energy capacity payments, another viewpoint had directed criticism towards the current government, alleging that the government had resorted to borrowing to fulfil populist campaign promises.
National issues
Dr Bannor said the Danquah Institute remained steadfast in its conviction that a thorough examination and discussion of facts, supported by rigorous research and data, were essential in providing the public with enhanced clarity, information and context regarding pertinent national issues.
He said the reality was that the trajectory of financial resource management under the NPP government from 2017 to the present had seen a far more modest addition to Ghana’s debt stock, averaging about 10.68 per cent annually.
This rate, he said, was significantly lower than the previous administration's record and suggested superior economic management by the NPP even amid global economic challenges.
Dr Bannor said the institute would always advocate a prudent fiscal policy that prioritised investments geared towards generating long-term benefits for future generations.
