Allegations of Excessive Borrowing by Mahama-led Government

The NPP Minority alleges that the Mahama-led Government has borrowed GH¢73 billion in two months since January 7, 2025, with further borrowing planned. Concerns are raised about excessive borrowing rates compared to the Akufo-Addo administration and soaring budget allocations in certain areas. Former officials accuse the government of manipulating fiscal data to support its narrative regarding the economy.

The Minority in Parliament, from the New Patriotic Party (NPP), has alleged that the Mahama-led Government borrowed GH¢73 billion within just two months after assuming office on January 7, 2025. During a press conference at Parliament House, Dr. Gideon Boako, the Member of Parliament for Tano North, revealed that the Finance Minister, Dr. Cassiel Ato Forson, is expected to borrow an additional GH¢6 billion from the domestic stock market, bringing the total to GH¢79 billion.

Dr. Boako warned that if this rate of borrowing continues, the government could incur a total loan of GH¢200 billion by the end of the year. He expressed astonishment at the government’s accelerated borrowing in comparison to the previous Akufo-Addo administration, which borrowed less than GH¢15 billion upon taking office in 2017.

The legislator also raised concerns over the GH¢2.7 billion budget allocation for the Office of the Government Machinery (OGM), which significantly exceeds the GH¢326 million allocated in 2024 by the previous NPP government. Additionally, he questioned how GH¢78.8 million was allocated to the Office of Government Communications, a figure surpassing the combined budgets of four ministries from the previous administration.

Dr. Mohammed Amin Adam, former Minister of Finance and Member of Parliament for Karaga, stated that the ruling National Democratic Congress (NDC) Government is manipulating fiscal data to support its claims of inheriting a poorly managed economy from the NPP. Dr. Adam criticized this approach as a calculated strategy initiated by the President during his State of the Nation address, asserting that it aims to validate unfounded claims through the upcoming 2025 Budget.

The claims made by the Minority highlight serious concerns regarding government borrowing and budget allocations under the current administration. With a potential total borrowing of GH¢200 billion foreseen this year, alongside substantial budget increases in certain government offices, there is a pressing need for fiscal accountability. Former officials critique the government’s handling of economic data, emphasizing the importance of transparency in public financial management.

Original Source: www.ghanabusinessnews.com