Ghana’s ex-president blames borrowing for Ghana’s inflation struggles
Ghana’s former president, John Mahama says the country’s inflation problems were caused by heavy borrowing by the incumbent government.
He revealed that over two years, the ruling New Patriotic Party (NPP) government borrowed more than 70 billion Cedis (about $4.57 billion) from the central bank, which he says led to the rising cost of goods and services.
“In my final year in office in 2016, we did zero central bank financing. We funded most of the budget from our own resources,” he told Global South World in an exclusive interview.
He noted that the International Monetary Fund (IMF) program Ghana is under has stopped central bank borrowing, which he sees as a good step. However, he said more fiscal reforms are needed to improve the economy.
The former leader also suggested cutting government spending and finding alternative ways to raise revenue.
Mahama further stressed the need to avoid increasing public debt and called for a focus on non-tax revenues and efficient borrowing.
“A combination of all of that would make things much better,” he said.
John Mahama is contesting in the upcoming elections in Ghana on December 7. He is one of 15 candidates hoping to win the votes of the populace and become president.
Here is the full interview:
