A former Deputy Minister of Communications, Felix Kwakye, has dismissed claims by the Vice President, Dr Mahamadu Bawumia that although debts levels are high at the moment, the economy has been better managed by the Akuffo-Addo administration.
Mr Kwakye Ofosu said the Vice President did not respect the audience that he made this claim to during the TESCON conference in Cape Coast on Saturday August 7.
The Vice President had noted that despite the rising public debt, inflation and exchange rates have gone down due to prudent management of the economy.
Speaking at a TESCON conference Dr Bawumia said, “I want to let you think about one thing; why is it that we want the debt levels maintained at prudent levels? The reason is that, if you do not manage your debt levels properly, it will affect your exchange rate, it will affect your interest rate, it will affect your inflation and it will affect your growth.”
He also said, “Our debt levels have gone up, but what has happened to inflation? It has come down. What has happened to exchange depreciation? Depreciation has come down. What has happened to interest rate? It has come down. What has happened to growth? It is going up.
Mr Kwakye Ofosu said in a facebook post on Sunday August 8, 2021 that, “According to the Vice President, public debt of GHC 334billion in 2021 representing 78.9% debt to GDP ratio which led to the use of 92% of tax revenue to pay interests and amortization on it alone, shows prudent borrowing but a public debt of GHC 120 billion, which debt to GDP ratio 56% which leads to the use of 28% of revenue to service it in 2016 shows non-prudent borrowing”
“He clearly did not have respect for the audience he addressed yesterday.”
Source: myghanadaily
