Ghana’s huge debt only used for short term benefits-Economist
Economist and chartered accountant Emmanuel Amoah Daekwah has said debt in itself is not a bad thing but what you use the loan for is the most important.
He was reacting to Ghana’s debt stock and whether Ghanaians should be worried.
He explained it becomes problematic when the loans we contract go into recurrent expenditure.
He said most of the loans we take go into short term benefits and the payment of salaries.
Ghana’s public debt stock rose by ¢13billion to hit ¢304.6 billion in March 2021, the latest Bank of Ghana (BoG) Summary of Economic and Financial Data has revealed.
This is equivalent to 70.2% of Gross Domestic Product (GDP), lower than the 76.1% registered in December 2020.
Speaking on Frontline on Rainbow Radio 87.5Fm, he stated that over the years, we have consistently borrowed for short term benefits and that is something found with other African countries.
He called for long term projects that will generate more revenue for the country instead of using the loans for short term benefits including paying salaries.