¢71 Billion Question: Boako Demands Honest Answers on Ghana’s Rising Debt
Dr. Gideon Boako, the Deputy Ranking Member of Parliament’s Finance Committee, has taken issue with the Finance Minister’s claim that pressure on the exchange rate is responsible for the recent increase in Ghana’s public debt. In a piece he titled “Double-tongued Minister for Finance,” the Tano North MP said the government is being inconsistent, arguing that it celebrated the strengthening of the cedi when debt levels fell but is now using the same exchange rate argument to explain why the debt has gone up. He explained that although currency movements can have some effect, they do not reasonably account for such a sharp rise in debt, especially when foreign debt at the end of 2024 was based on an exchange rate of GH¢14.3 to the dollar, compared to the current rate of about GH¢11.4, yet the debt stock has still increased by more than GH¢71 billion. According to Dr. Boako, this reflects a weak grasp of how debt works, and he urged the Finance Minister to offer a clearer, more honest and detailed explanation of the numbers.
