A senior researcher at the Institute of Fiscal Studies (IFS) Dr. Saeed Boakye says Ghana’s current debt level is “scary”.
According to him, the situation is worsened by the amount of money government spends on compensation for public sector workers.
“It is very scary, the debt rate compared with revenue inflows is scary. And the government must do something about it immediately. The government must take bold steps.
“If you compare the situation with other countries, the amount we spend on compensation of staff is too high. We must reduce it in order to do some savings,” he said while commenting on the 2020 budget.
He stressed: “We have to be prudent as possible. If some of the flagship programs must be cancelled, we should do so. Something like NABCo should be reviewed because we understand some people are doing nothing but are getting paid”.
Also, a senior economist with the IEA Dr John Kwakye has warned the debt rate of the state is getting into unsustainable levels.
“We are moving into unsustainable territory. We should be mindful at the rate at which we are accumulating debts,” Dr Kwakye warned.
Ghana’s government debt has increased as it spends more than planned. The country’s total debt stock has hit GH¢205 billion ending July this year.
This was contained in the September Bank of Ghana’s summary of financial and economic data.
Bailouts to lenders during a cleanup of the banking sector and liabilities for excess power and gas that Ghana doesn’t consume have pushed up government debt.