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BusinessGovt borrows GHC7bn from Ghanaians to pay contractors

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Govt borrows GHC7bn from Ghanaians to pay contractors

The Minority in Parliament has expressed concerns about the government’s recent borrowing of GH¢7 billion from the treasury bills market to compensate contractors outside of its budgetary allocations.

According to the Minority, this practice of exceeding budgeted expenditures for political purposes is worsening the depreciation of the cedi against the dollar.

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Speaking to reporters on Wednesday, May 15, Minority Leader Dr. Cassiel Ato Forson condemned the government’s reckless spending and called for fiscal discipline.

“They are on an expenditure spree, spending money as if there is no tomorrow. In the last few days, we are aware that they have paid approximately GH¢7 billion to contractors, off-budget contractors, off-budget expenditures, GH¢7 billion.

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“They borrowed from the T-Bill market, so they borrowed the money from ordinary Ghanaians then they paid this money to these contractors, and the contractors are also not certain so they have engaged in currency substitution.

“The contractors got Cedis and went and changed it into US dollars and kept the money because of a lack of confidence in the economy.”

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