In a parliamentary debate on Thursday, Haruna Iddrisu, the Member of Parliament (MP) for Tamale South, boldly proposed a cap on government borrowing, suggesting that no president or government should be allowed to borrow beyond 70% of GDP.
“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,” remarked Haruna Iddrisu during the budget allocation debate for the Finance Ministry.
If implemented, this proposal would significantly constrain the government's capacity to acquire new debt, addressing concerns about Ghana's rising public debt.
The World Bank reported that Ghana's public debt increased from 79.6% in 2021 to over 90% of GDP in 2022, with debt service-to-revenue reaching 117.6%.
Haruna Iddrisu also called for a forensic audit into the indebtedness of the Finance Ministry to State-Owned Enterprises (SOEs), specifically mentioning Ghana Gas, ECG, and NCA as entities where significant debt may be held.
“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 emphasized.
The proposed cap on government borrowing and the call for a forensic audit underscore the MP's commitment to ensuring fiscal responsibility and transparency in managing Ghana's finances.
