• Mon. Aug 15th, 2022

Tamale Airport, Kumasi Airport Phase II, Pokuase Interchange are projects from the loans – Bawumia

Vice President Dr Mahamudu Bawumia has enumerated the projects that the Akufo-Addo administration has done over the years through the laons that the Akufo-Addo administration has hired.

“The projects that we have undertaken from the loans over the years, you will see that we borrowed to build the University of Environment Science and Sustainable Development, that is part of the debt, the Pokuase Interchange is part of the debt, the Tema Mpakadan Railway is part of our debt, the Kumasi Airport Phase 2 is part of our debt, the Tamale Airport is part of our debt,” he said at a forum organized by TESCON, the New Patriotic Party’s (NPP

Dr. Bawumia went on to explain why the public debt is so large.

According to him, the rising public debt was caused by the cleaning up of the banking sector and the payment of excess power in the energy sector as a result of contracts signed by the National Democratic Congress (NDC) administration.

In response to the Covid spending, he claimed that the government needed to save people’s lives, which led to the decision to prioritize health-care spending in order to restore people’s health.

The government spent $50.1 billion on all of these areas, according to Dr. Bawumia.

However, he predicted that the debt in the banking sector and the Excess Energy payment would be around 68 percent rather than 81 percent.

“Ghana’s debt to GDP grew by 17.6 percentage points of GDP between 2019 and 2021. Without the 15.1 billion in unusual items — the financial sector, followed by energy and Covid – Ghana’s debt to GDP would have been at 68 percent, rather than the present 80 percent,” he said.

The current economic difficulties in Ghana, according to the Head of the Economic Management Team, are due to continued geopolitical tensions between Russia and Ukraine.

According to him, Russia supplies 30% of Ghana’s imported cereals, 50% of flour, and 39% of fertilizer.

As a result, he added, the war had an impact on the local economy.

“The crisis between Russia and Ukraine has worsened the rise in commodities prices.” Together, Russia and Ukraine contribute for 30% of world wheat exports. The longer the fighting lasts, the more the world food supply will be disrupted. Global growth is likewise likely to be slowed as a result of the country’s actions.

“Wheat prices have risen by 62 percent since the war began, according to the African Development Bank. Since the start of the war, the price of fertilizer has increased by 300 percent, while the price of corn has increased by 36%. Ukraine accounts for 60% of our total iron ore and steel imports in Ghana.

“Russia supplies 30% of Ghana’s imported cereals, 50% of flour, and 39% of fertilizer. As a result, the Russia-Ukraine conflict has a direct impact on us. We don’t know when it will end, unfortunately. Fuel price hikes around the world are causing hardship.”

He also stated that he realizes that the country is currently facing some difficulties.

He did say, however, that the administration had taken steps to alleviate the hardships that the people are experiencing.

“From the guy on the street to the business magnate, the economy’s health is the foundational instrument,” he remarked.

“What we feel in our pocketbook is the economy.” I recognize that we are going through a difficult period; this is the truth. Fuel and practically other goods are growing in price in our economy. The cost of living is rising.”

“Many Ghanaians were taken aback by these developments, and many questions regarding the status of the economy have been raised.” What happened to the fundamentals? is one of these questions. Why are goods and services costs rising so quickly? What is the reason behind the Cedi’s rapid depreciation this year?

“What accomplishments does the government have to show for the increased debt?” Where has the administration promised to establish a new economy? I’ll answer these questions with data and facts.

“I’ll admit there are obstacles, and we’ll all leave here knowing more about the economy, where we came from, and where we’re headed.”

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