Ghana’s public debt now 80.1% of GDP

Ghana’s growing public debt is rising beyond sustainable levels. The country’s debt has now exceeded 80 per cent, according to the Bank of Ghana. The public debt has increased to 80.1 per cent of GDP.

The central bank says provisional data on budget execution for 2021 indicated an overall broad fiscal deficit (cash, excluding financial sector clean-up costs) of 9.7 per cent of GDP, against the programmed target of 9.4 per cent of GDP.

It said the corresponding primary balance for the period was a deficit of GH¢8.9 billion (2.0 per cent of GDP), against a deficit target of GH¢8.7 billion (2.0 per cent of GDP).

“Over the year, total revenue and grants amounted to GH¢67.9 billion (15.4 per cent of GDP), below the projected GH¢72.5 billion (16.7 per cent of GDP). Total expenditure amounted to GH¢110.4 billion (25.1 per cent of GDP), below the programmed target of GH¢113.8 billion (25.9 per cent of GDP).

“These developments impacted the stock of public debt which increased to 80.1 per cent of GDP (GH¢351.8 billion) at the end of December 2021, compared with 76.0 per cent of GDP (GH¢291.6 billion) at the end of December 2020.

Of the total debt stock, domestic debt was GH¢181.8 billion (41.4 per cent of GDP), while the external debt was GH¢170.0 billion (38.7 per cent of GDP),” the Bank said.

By Emmanuel K. Dogbevi