The Minority in Parliament has weighed in on Ghana’s debt trajectory from 2009 to 2024, defending the New Patriotic Party (NPP)’s economic management while criticizing the National Democratic Congress (NDC) for what they describe as excessive borrowing during their tenure.
Addressing the press on the 2025 budget statement presented by former Finance Minister Dr. Amin Adam, the Minority highlighted key differences in debt accumulation under both parties.
“The discourse surrounding Ghana’s debt profile from 2009 to 2024 is both multifaceted and pivotal. Following the attainment of the HIPC completion and external debt relief, Ghana witnessed a remarkable decline in our public debt to GDP ratio.
However, the public debt which stood at $8.07 billion in 2008 surged to $29.2 billion by 2016, marking a more than threefold increase.
Cumulatively, this represents a growth rate, or an increase of about 261.83% in the total public debt stock. This rate of change indicates that on average, the NDC government added 32.75% debt to Ghana’s debt stock every year between 2009 to 2016,” they stated.
They argued that under the NPP, Ghana’s debt accumulation has been slower despite global economic challenges.
“Contrary to public perception, the public debt which stood at $29.2 billion in 2016 has increased to $52.3 billion as at the end of 2023 and to $49.3 billion following the debt restructuring programme.
This marks a little over one and half increase in the overall public debt stock under the NPP. This represents an increase of about 68.83% in the total public debt stock. Unlike the trajectory between 2009 to 2016, the NPP on average, has added about 8.6% to Ghana’s debt stock every year between 2017 to date. A rate far lower than the 32.75% witnessed under the NDC.
This rate, significantly lower than the NDC administration, suggests superior economic management by the NPP, even amidst global economic challenges,” the statement added.
The Minority also pointed to Eurobond interest rates as a factor affecting Ghana’s debt burden, taking a swipe at the previous NDC government’s borrowing strategy.
“Examination of the role of Eurobonds as a primary avenue for government borrowing shows that the high coupon rates, exemplified by the 10.75% rate in 2015 under the NDC, have imposed considerable financial strains on Ghana’s economic stability,” they noted.
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