Ghana’s debt stock has hit GHS291.6 billion as of December 2020.
This was disclosed on Friday, March 12, 2021, by the Minister for Parliamentary Affairs and caretaker Minister for Finance, Osei Kyei-Mensah-Bonsu was briefing the nation on this year’s budget.
“The total public debt has increased from GHS122 billion, which is 69% of GDP to GHS291.6 billion, which is 76.1% of GDP, as of the end of December 2020,” he said when he presented the 2021 budget statement in Parliament.
He blamed the ballooning debt stock on some non-recurrent burdens.
The Caretaker Finance Minister indicated that if these expenditures were to be excluded, the debt stock would have been GHS239.9 billion, which would have been 58.7% of GDP.
“Included in the debt stock and the debt to GDP ratio are the following non-recurrent burdens that we had to deal with as a matter of urgency; the physical impact of COVID-19, which is GHS19.7 billion, the cost of the financial sector clean-up, which is GHS21 billion, and the cost of excess capacity charges paid to IPPs, which is also GHS12 billion.”
“If these expenditures are excluded and the drop in GDP growth in 2020, primarily attributable to COVID-19, is taken into account, the total stock of debt for 2020 would have been approximately GHS239.9 billion, implying a dent to GDP ratio of 58.7%.”