<<Print>>

THE ATTA Mills-led National Democratic Congress (NDC) government has borrowed about $8.9 billion in a short period of two years- the highest by any administration since independence, according to the Minority group in Parliament. Contributing to the debate before the approval of government�s supplementary budget of GH�1,463,123,559 in Parliament yesterday, the New Patriotic Party (NPP) MP for Dormaa West, Kwaku Agyeman-Manu indicated that the Mills administration borrowed the money from 2009 to March 2011 and more loans are expected within the next couple of days. Government is seeking approval for a $3 billion loan facility from China, which will bring the total loans to $11.9 billion in less than three years. Mr. Agyeman-Manu, who is also a former deputy Minister of Finance and Economic Planning, pointed out that the loans contracted by the Mills administration are far more than what the John Agyekum Kufuor led NPP borrowed in eight years, as it left behind an accumulated debt of only $8 billion in December 2008, having inherited a $7.5 billion debt at the inception of the administration in January 2001. Damning the current state of the economy, the former deputy minister said Ghanaians have not seen any improvement in their lives after huge amounts of loans taken by government. �With all the huge money coming in, workers� salaries are not paid on time,� Mr. Agyeman-Manu observed, adding that �Government is running an economy that is shrinking with more money coming into the country�. NDC administration�s management of the economy, he further noted, may throw the nation into HIPC (Highly Indebted Poor Country) again as it did in the past because it may be difficult for the country to pay its external debts. According to the MP for Old Tafo and Minority Spokesperson on Finance, Dr. Anthony Akoto Osei, the high rate of borrowing by government has contributed to soaring interest rates by banks, which is killing businesses and individuals in the country. �At the rate of borrowing, I am surprised that government is surprised interest rates are going up,� remarked Dr. Akoto Osei, who is also a former minister of state at the Ministry of Finance and Economic Planning. Notwithstanding all the huge external loans taken by the NDC government, Dr. Akoto Osei pointed out that the Mills administration has accumulated more arrears in two and a half years than the NPP administration did in eight years. He indicated that the arrears accumulated by government amounted to about $5 billion in less than three years, which is unprecedented in the country�s political history. Giving the breakdown, the Old Tafo MP indicated that in 2009 alone, government accumulated new arrears of about $1.5 billion, another $1.5 billion in 2010 and $2.14 billion as arrears for the Single Spine Salary Structure (SSSS). He wondered where the revenue from high taxes, astronomical increases in road tolls and sky-rocketing fuel prices has been going. �Na sika no wohen?� Dr. Akoto Osei teased the Mills administration in Twi language, meaning �where is the money?� However, Members from the Majority NDC, led by Cletus Avoka, put up a spirited defence, saying the economy has been prudently managed since 2009. Haruna Iddrisu, MP for Tamale South, praised the Ministry of Finance and Economic Planning and said its prudent management of the economic has contributed to the macro-economic stability and low inflation in the country. Haruna, Minister for Communications, lauded government for allocating about GH�50 million to the Judiciary to carry out its duties. He also dismissed claims that government is not mindful of its utilisation of oil revenue in accordance with the Petroleum Revenue Management Act.