Former President John Mahama has attributed the current economic crisis to the mismanagement on the part of the ruling New Patriotic Party (NPP).
Addressing Ghanaians when he joined the NDC’s Professionals Forum lecture series on the topic “The State of Ghana’s Economy-The Score card”, Mr. Mahama indicated that his government had been able to turn around the economy before leaving office in 2017.
“Despite these favourable conditions, most of the gains we made and bequeathed to this government
have been eroded and we have been plunged into further economic crisis,” Mr Mahama noted after listing some multiple income-generating streams his government left for the NPP government.
He alleged the government had spent so much on its re-election bid, resulting in the ballooning public debt and hikes in taxes that have fuelled hardship in the country.
“COVID-19 has become the convenient whipping boy and has been cited as the reason for the crisis we
face now and the attendant economic hardships. Yes, COVID-19 affected the economy, and no one can
dispute that. It is however not the main reason why we are in the current hole we find ourselves. COVID19 only became a pretext for reckless election-related spending, which produced the largest ever budget
deficit in the recent economic history of Ghana last year,” he added.
He went on to say the countrys’ debt has ballooned to “unsustainable levels- topping 80% of GDP- exposing us to very high risk of debt default.”
“Almost all of our tax revenue is used to service our debt and the effect has been the introduction of several new taxes. This has led to rampant increments in the prices of goods and services. This is primarily responsible for the hardships Ghanaians are going through now.”
This was after a former Finance minister, Seth Terkper has launched attacks on the Akufo-Addo led government for what he described as the mismanagement of the country’s resources with impunity.
Mr Mahama, who said he had only mounted the platform to reinforce few of the points made by Mr Terkper, stated the only way to stop this government from milking the state coffers dry is to change the government in 2024.
He referred to the Auditor General’s report that revealed that financial irregularities within the public sector shot up from about GHS700 million in 2016 to GHS12 billion in 2020.
“This level of leakage will definitely affect the ability of any government to deliver on its mandate and guarantee citizens an appreciable standard of living. The nonchalance and total unwillingness to address corruption in government is a major worry and will continue to affect our economic fortunes until the trend stops,” he contended.