Abraham Amaliba, a prominent member of Ghana’s opposition, has called for the removal of the New Patriotic Party (NPP) in the upcoming elections, asserting that it is the only way to address the country’s escalating public debt crisis.
Amaliba, speaking on TV3’s Big Issue on Friday, July 27, criticized the NPP administration for prioritizing personal interests over the welfare of Ghanaians. He contended that the government’s mismanagement has exacerbated the country’s debt, which has surged to GH¢742 billion (US$50.9 billion) as of June 2024.
“When electing a government, you expect leaders to act in the people’s interest, but this administration has prioritized its gain,” Amaliba said. He added that the first step in addressing the mounting debt is to vote out the current government. He also recommended that the next administration focus on reducing reliance on imports that drain foreign currency reserves.
In his mid-year budget review on July 24, Finance Minister Dr Mohammed Amin Adam reported that Ghana’s debt stock represents 70.6% of the country’s Gross Domestic Product (GDP). The debt comprises GH¢452 billion in external debt and GH¢290 billion in domestic debt, reflecting a 22% increase attributed to cedi depreciation and ongoing disbursements from creditors.
Dr Adam assured us the government would adhere to its budgetary limits despite the concerns. He highlighted that expenditures have been controlled and revenue targets exceeded by 0.2% by the end of June 2024. Dr Adam emphasized that the government is on track to achieve a yearly GDP surplus of 0.5% by year-end.
The Finance Minister also detailed recent financial agreements, including the successful conclusion of debt restructuring programs and negotiations with Eurobond holders. These efforts are expected to provide significant debt relief, including the cancellation of US$4.7 billion in debt and savings of US$6.6 billion from Independent Power Producers’ agreements.
“We are committed to fiscal discipline and have made substantial progress in managing the country’s financial obligations,” Dr. Adam stated.
As Ghana approaches its elections, the debate over economic management and debt relief remains a focal point in the political discourse.
