BoG report reveals Mahama's administration incurs GH¢ 8.8b debt in the last 9 months
Posted on: 2013-Sep-20        
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The Bank of Ghana has revealed in a recent that the Mahama administration has so far incurred GH¢ 8.8 billion debt in the last 9 months following a review of the economy over the past two months by the Central bank’s Monetary Policy.

The report said the stock of public debt increased from GH¢ 35.1 billion in December 2012 to 43.9 billion at end of August 2013. This means Mahama’s administration has so far incurred 8.8 billion cedi debt since he assumed office nine months ago.

According to the report, preliminary fiscal data for the first seven months of the year indicate that both revenue and expenditure remained below targets.

Out of the GH¢ 43.9 billion the domestic component amounted to GH¢ 24 billion compared to GH¢ 18.5 billion in December 2012.

Meanwhile External debt went up from $8.8 billion in December 2012 to $10.2 billion. The increase in the external debt according to the report was mainly due to the sovereign bond issue.

Former Deputy Governor of the Bank of Ghana, and 2012 vice presidential candidate of the New Patriotic Party, Dr Mahamudu Bawumia, have suggested that Ghana's economy is in a troubling and hopeless state.

He points to government’s recent introduction of new taxes, and its inability to settle various statutory payments as clear evidence of the troubled state of the country's economy.