Dr. Frank Bannor, Director of Research at the Danquah Institute, has emphasized the superior economic management of the New Patriotic Party (NPP) compared to the National Democratic Congress (NDC), particularly regarding Ghana’s debt profile from 2009 to 2023.
Analyzing available data, Dr. Bannor highlighted the significant increase in Ghana’s debt from $8.07 billion in 2008 to $29.2 billion by the end of 2016 under the NDC. This reflected an average annual debt increase of 32.75%. In contrast, the NPP government, from 2017 to the present, has maintained a much lower annual debt increase rate of 10.68%.
“This stark difference suggests superior economic management by the NPP, even amidst global economic challenges,”
Dr. Bannor noted.
He also discussed fiscal deficits as a crucial measure of government financial management. He pointed out the significant deficit in 2012 under the NDC, primarily due to heightened election-year spending. This led to prolonged fiscal challenges and double-digit deficits from 2013 to 2014, eventually necessitating an IMF extended credit program in 2015.
“In contrast, the NPP’s performance shows double-digit deficits were rare, with only one instance in 2020 due to the Covid-19 pandemic. This comparatively favorable fiscal track record underscores the NPP’s commitment to prudent financial management,”
Dr. Bannor stated.
He elaborated on the judicious use of borrowed funds by the NPP government from 2017 to 2023, emphasizing substantial allocations to the energy sector and infrastructure development. Notable expenditures included payments to independent power producers, construction of interchanges, road projects, railway expansion, mini harbors, fishing landing sites, and healthcare investments through ambulance procurement.
“These investments signify a strategic approach to using funds for developmental projects aimed at enhancing economic growth and societal well-being,”
Dr. Bannor asserted during a press conference in Accra on Wednesday, April 17.
Dr. Bannor’s comments came in response to former President John Dramani Mahama’s accusations that the NPP administration engaged in excessive borrowing without tangible projects to show for it.
