The Minority in Parliament has observed that the gloomy picture painted by President John Dramani Mahama in his maiden State of the Nation Address (SONA) will hurt the nation as it will scare investors away.
“President Mahama shot himself in the foot by his rush to paint gloomy picture of the economy.
“What the President also failed to do was to inform the people of Ghana that there are other significant measures of the performance of the economy that inform the state of the nation other than inflation,” Mohammed Amin Adam, a former Minister of Finance, made these remarks during a news conference at Parliament House in Accra on Monday.
Dr Amin Adam, also the Member of Parliament for Karaga, spoke on behalf of the Minority Caucus in its “True State of the Nation Address” in response to President Mahama’s SONA, presented to Parliament last Thursday, February 27.
The legislator said besides the Sinking Fund, the immediate past NPP administration left significant financial buffers to cushion the new government and support its expenditures and maturing debt obligations.
He mentioned five billion Ghana Cedis left by the GRA’s revenue collection in the Treasury Main 2 Accounts, $8.9 billion gross international reserves, which translated to four months import cover and $360 million IMF support due for disbursement to Ghana on December 2,2024.
More also, he said, with the strong negotiation skills of the previous government, Ghana’s bilateral creditors agreed to reschedule her debts worth $5.4 billion until 2026.
Additionally, the country’s bilateral creditors cancelled four billion dollars of her debts and given $4.7 billion debt service relief with her Eurobond holders.
Dr Amin Adam said the previous NPP government’s debt management strategy was a masterstroke that had inured to the benefit of the current NDC government.
“We must celebrate our achievements irrespective of who is recounting it at any point,” he noted.
Dr Amin Adam argued that debt management was a routine responsibility of any administration and entreated the new government to mobilise funds in due course to pay it.
The President in his address raised concerns over Ghana’s debt servicing obligations for the next four years, estimating that the government would need GH₵280 billion, comprising GHS150 billion for domestic debt and GHS130 billion for external debt.
Dr Amin Adam said such debt obligations were not unusual and entreated the new government not to instill fear in the public and the investor community but rather find innovative ways to raise funds to redeem her debts.
“The President tried to scare the Ghanaian people about the country’s debt service obligations for the next four years. Government at every time, provides for debt servicing obligations, and the President is aware of this. We expect him to mobilise the funds as every government in Ghana has done to service our debts,” Dr Amin Adam stated.
Dr Amin Adam outlined the terms of debts rescheduling payment plans, noting that it would provide breathing space for the current government.
“This is money that the government of Ghana would have paid but which now stands as savings to the country,” he said.
The lawmaker thus urged President Mahama to focus on effective economic management rather than stirring fear among the populace.
GNA
