The Vice President while speaking at the closing ceremony of the two-day National Policy Summit on Trade and Industry on 15th August, 2017, at the International Conference Center said that, the NPP government will continue to borrow to help grow Ghanaian’s economy but, they will do that responsibly and not recklessly.
“No government can say it won’t borrow money, that is ridiculous, but you have to borrow responsibly and not recklessly,” he emphasized.
According to the vice president, “a lot of people misunderstand when we say we are going to be responsible, it doesn’t mean that we are not going to borrow money, it only means that, we are going to borrow responsibly and not recklessly,” he further stressed.
Dr. Bawumia at the summit promised, “the NPP government will adopt fiscal discipline to ensure that the economy does not veer off track.”
Meanwhile, when the NPP was in opposition, they criticized the Mahama government of chasing for foreign loans which they claimed catalyzed the country’s debt stock to unsustainable levels.
The vice President therefore said, government is in the process of amending the Public Management Financial Act to limit the country’s fiscal deficit between 3 and 5% of GDP starting from 2018.
“We are very focused on making sure the macro economy is stable and we will continue with the process of fiscal consolidation. We got off the wagon as far as the fiscal deficit is concerned, but we are coming back by bringing the fiscal deficit from 9.4% in 2016 to a projected 6.35 this year.
And we are going to pass a law by amending the public management financial act to limit the fiscal deficit from 2018 going forward to a maximum of the window between 3 and 5% of GDP. That is the way forward.
We’ve never done this in Ghana but this demonstrates that the government is very committed to keeping fiscal discipline so that every investor, both internal and external and every player in our economy will know that, going forward from 2018 Ghana’s fiscal deficit will always be within the range of 3 and 5% of GDP,” he explained.
Speaking, he added that, new figures from the Bank of Ghana (BoG) show that the country’s total public debt is at GHS137.2 billion as at May 2017.
Saying “this was contained in the economic and financial data released by the central bank at the end of its Monetary Policy Committee meeting which states that, the debt stock increased by GHc9.4 billion within the last three months from GHc127.8 billion to GHc137.2 billion.