Dr. Bawumia Must Bring His Boys To Order On Ghana's Debt Stock
Sadiku Katadatu clarifies ...........
"Let's forget about the oil money. Let's forget about gold. Just put those resources they've had aside. I just want to focus on statistics. How much money have they borrowed since they've been in office in the last seven years? When they came in, Ghana's debt was 9.5 billion Ghana cedis. Today, after seven years, they've increased it from 9.5 billion, which is from independence to 2008. Today, they've increased it to 90 billion cedis." ~ Dr. Bawumia on Ghana's May 2015 debt stock
I have taken a keen notice in recent times of a calculated attempt by the NPP communicators and footsoldiers on social media to mislead the ordinary innocent Ghanaian on the country's debt stock issues. What these funny footsoldiers seek to do is to compare in percentages wise, the debt stock in the 8 years administration of the NDC to the 3 years of this insensitive Nana Addo government.
To start with, please let's consider this scenario;
Dr. Bawumia in December 2008 went to the market and bought a toy that was sold for GHS10. He went back to the market in December 2016 and bought the same product at GHS20 (thus GHS10 increase or 10/10*100=100% increase).
Now in May 2020, the toy is sold for GHS35 (thus GHS15 increase or 15/20*100=75% increase). So should Dr. Bawumia be concerned about the GHS15 increase (from 2016-2020) or the 100% increase (from 2008 to 2016)??? Interestingly, these NPP guys are telling Dr. Bawumia to be angry at the 100% increase instead of the GHS15 increase. Because to them, 100% is greater than 75%, and nothing else. Very funny, right?
|VARIABLES||NDC (AS AT DEC 2016)||NPP (AS AT MAR 2020)|
|Total debt stock||GHS 120 billion||GHS 236 billion|
|Debt increment||GHS 120 billion - GHS 9.5 billion = GHS 110.5 billion||GHS 236 billion – GHS 120 billion = GHS 116 billion|
|Average per year||GHS 110.5 billion/ 8 years = GHS 13.81 billion||GHS 116 billion/3.3 years = GHS 35.15 billion|
|Incremental percentage||-||GHS 116 billion/GHS 120 billion*100 = 96.6%|
|Debt to GDP ratio (after rebase)||56%||62%|
From the table above, it is clear that this NPP government has done Ghanaians more harm than good, so far as Ghana’s current debt stock is concerned.
Now to the main subject matter [I'm not interested in what the monies were used for by the various governments for now], please take note of these facts:
• The debt stock of Ghana as at December 2008 stood at GHS9.5 billion
• It increased to GHS120 billion at the end of December 2016 (An increase of GHS110.5 billion in 8 years of the NDC administration)
• The debt stock at the end of MARCH 2020 which was released by the Bank of Ghana stands at GHS236 billion (an increase of GHS116 billion in 3 years and 3 months of this NPP administration).
• On the average, the NDC increased the debt stock by GHS13.81 billion yearly in the 8 years of its administration WHILES the NPP has so far increased it by GHS35.15 billion yearly in the last three years and 3 months; thus even if the stock remains at GHS236 billion till the end of December 2020. And we all know that it will definitely increase because the government continues to secure more loans since April 2020 in the name of COVID-19 fight and stimulus packages for businesses.
Now where these NPP guys sought to mislead the innocent Ghanaian is, they take the percentage of the stock increase under the NDC in 8 years which is 110,500,000,000/9,500,000,000*100=1163% and jump the gun and take that of the NPP against the December 2016 debt stock, thus 116,000,000,000/120,000
,000,000*100=96.6%, without considering and talking about the real amounts involved within the time periods in question.
So shamefully for them, they are making noise on social media over the 1163% in 8 years of the NDC instead of the all-time record of GH116 billion figure in less than 4 years of this their reckless administration.
Please let's all be vigilant; percentages can be misleading sometimes if one is not smart.
Now, imagine if Nana Addo had inherited president Kufuor and has increased the debt stock by this his GHS116 billion in less than 4 years, what would have been the increase in percentage-wise? Look at it: 116,000,000,000/9,500,000,000*100=1221%
So can we now compare the 1163% increase in 8 years of the NDC against the 1221% increase in less than 4 years of the NPP? I'm sure they won't talk about this.
I, therefore, call on Dr. Bawumia to urge those his NPP boys on social media to stop their mediocre propaganda on the debt stock subject and provide solutions if any to the Economic Management Team so as to curb the horrible and terrible rise in the country's debt stock under his watch.
Credit: Sadiku Katadatu
NDC Youth Activist
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