Ghana spent a greater proportion of borrowed funds on consumption – ISSER
The Institute of Statistical, Social and Economic Research (ISSER) has stated that Ghana has spent a greater proportion of borrowed funds on recurrent expenditure and interest payments, especially in the last few years.
According to the economic and research outfit of the University of Ghana, Ghana’s debt has not favoured capital spending.
Between 2017 and 2022, Ghana issued US$11.025 billion in Eurobonds. This is compared with US$4.5 billion between 2009 and 2015.
To this ISSER wants the government to prioritise sustainable debt management.
Government Must Borrow Responsible
It recommends that the government borrow responsible and at near concessional rates as much as possible.
It is also calling for the resourcing of the Public Interest and Accountability Committee to provide oversight of government debt to ensure transparency and accountability.
ISSER also wants an improvement in investment efficiency.
“Ensure that each dollar borrowed is invested in the productive ventures capable of generating sustained returns”, it mentioned.
“Invest more in capital projects; some feasible examples are education and health”, it added.