Ghana’s debt stock hits GH¢291.6 billion

Ghana’s debt stock stands at GH¢291.6 billion as of December 2020, this was disclosed by the caretaker Minister for Finance, Osei Kyei-Mensah-Bonsu.

He made this known when he presented the 2021 budget statement on Friday, March 12, 2021, on behalf of Ken Ofori-Atta who is in the United Kingdom for medical reasons.

“The total public debt has increased from GH¢122 billion, which is 69% of GDP to GHS¢291.6 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.

Some non-recurrent burdens were blamed for causing the never ending skyrocketing of the country’s debt.

Mr. Kyei-Mensah Bonsu indicated that if these expenditures were to be excluded, the debt stock would have stood at GH¢239.9 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 GH¢19.7 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 GH¢12 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%,” he added.

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