The Member of Parliament (MP) for Tamale South, Haruna Iddrisu, has advocated for a bold measure to cap government borrowing at 70% of GDP, aiming to impose significant constraints on the government’s capacity to accumulate additional debt.
During a debate on the budget allocation for the Finance Ministry, he emphasized the need for parliamentary vigilance to ensure fiscal responsibility across presidencies and administrations.
“This parliament must sit up and we must sit up to demand a feeling for good for all presidents and governments. I maintain that no president or government should be allowed to borrow beyond 70% of GDP,” he said.
In addition to the borrowing cap proposal, the former Minority Leader called for a thorough forensic audit into the indebtedness of the Finance Ministry to State Owned Enterprises (SOEs).
Specifically, entities such as Ghana Gas, ECG, and NCA were highlighted as areas where the Ministry of Finance might hold substantial debt.
“I am asking for a forensic audit as to how much money the Ministry of Finance has held on state-owned agencies, Ghana Gas, ECG, NCA. Those of them who have other holding that the office of the Chief of Staff has taken money away from them. We need to know,” he said.
Haruna Iddrisu’s recommendations come in light of concerns raised by the World Bank, indicating that Ghana’s public debt escalated from 79.6% in 2021 to over 90% of GDP in 2022.
The rising debt levels have led to a debt service-to-revenue ratio of 117.6%, prompting worries about Ghana’s ability to meet its financial obligations and exposing the country to potential economic vulnerabilities.