Professor of Economics with the Finance Department at the University of Ghana Business School Godfred Alufar Bopkin has expressed concerns about the recent increment in the public debt stock of the country, stating that the current feat could have been avoided if not minimized.
According to him, discussions on debt stock is important because of the rebasing of the economy.
More so, he noted that government made a lot of commitment to servicing the debt to Gross Domestic Product (GDP) ratio by using her revenue; a move, which in his opinion, brought about the 13.2 billion Ghana cedis difference.
“I think that we should be concerned just as we were concerned three years ago the debt numbers started going up, and reason we should be concerned is because the rebasing of the economy seemed to have dwarfed the discussion of debt to GDP ratio as one measure and for that reason you observe that when you divide the public debt now by the new GDP series outcome seem to be much lower now, less than 60% and that itself may give you a whole comfort zone so to speak one measure that they trace whatever gains we have made as a result of the rebasing is a debt service to revenue ratio where we are spending more than 44% of our tax revenue just to service our debt.”
Data from the Central Bank shows that the new debt stock represents 57.9 per cent of the total value of Ghana’s economy.
The county’s total debt stock has hit 172.9 billion Ghana cedis up from the 159.7 within the same period last year.
According to the Summary of Economic and Financial data released by the central bank, the country has witnessed an increment of 13.2 billion Ghana cedis in July and November last year.
Credit: Khadijatu Abdul Latif|universnewsroom.com