The flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, has pledged to amend the Public Financial Management Act to place a cap on Ghana’s external borrowing.
He stressed the need for greater fiscal responsibility and indicated that if elected, his administration would impose stricter limits on the amount the government can borrow from international creditors.
Mr Mahama highlighted the lack of transparency in the country’s debt management, which he said has contributed to unsustainable borrowing practices.
To address this, he proposed making the debt management department of the Finance Ministry an autonomous entity. This body would be responsible for publishing Ghana’s debt-to-GDP ratio on a quarterly basis to ensure accountability.
Speaking to supporters at Dodowa in the Shai-Osudoku constituency as part of his Greater Accra regional campaign tour, Mr Mahama reiterated his commitment to restoring discipline in public financial management.
He emphasised that an NDC government would prioritize prudent borrowing and provide regular updates on the country’s financial health.
The former president also noted that improving debt transparency is essential to restoring investor confidence and ensuring long-term economic stability.
He called on Ghanaians to support his vision for a more accountable and transparent government in handling public finances.
“There is no transparency in our debt management. The only time we hear how much we owe as Ghanaians is when the Minister of Finance is reading the budget and tells us what our debt-to-GDP is. NDC is going to change that.”
“We are going to make the debt management department of the Finance Ministry a separate autonomous department. It will be a Debt Management Authority and it will have a head who will be autonomous and he will publish every quarter what our debt-to-GDP numbers are.”
“Aside from that, we will change parts of the Public Financial Management Act and put a clause there on how much money a Finance Minister can borrow. So, if we agree that we should not borrow more than 60% of GDP, then we will put it in the Public Financial Management Act so that no finance minister can come in future and borrow money as badly as he wants and leave a debt for the young people who are sitting here,” he stated.
Source: myjoyonline.com
