Ghana running into unsustainable debt levels topping 80% of GDP, exposing us to very high risk debt default – Mahama

Former President, John Dramani Mahama has said the Akufo-Addo government must accept that it is has mismanaged the country’s economy.

In a post on the Facebook page, the 2020 presidential candidate of the National Democratic Congress (NDC), John Dramani said Ghana’s debt has ballooned to unsustainable levels.

This, according to him, is the reason Ghanaians are facing untold hardships.

“Our debt has ballooned to unsustainable levels- topping 80% of GDP- exposing us to very high risk of debt default. Almost all of our tax revenue is used to service our debt and the effect has been the introduction of several new taxes. This has led to rampant increments in the prices of goods and services. This is primarily responsible for the hardships Ghanaians are going through now,” part of the post on John Mahama’s page has said.

It adds, “This government must accept that it is their mismanagement of the economy, their thirst for consumption expenditure and the desire to spend beyond our means in order to win elections that have plunged us into the current crisis, not necessarily COVID-19.”

Earlier this year in July, data from the Bank of Ghana revealed that Ghana's public debt stock had increased to GH¢332 billion.

The debt stock which ended the first quarter of 2021 at GH¢ 304.6 billion, increased by almost GH¢ 30 billion in April and May.