Finance Minister, Mr. Ken Ofori-Atta has disclosed that non-central government activities, notably State-Owned Enterprises (SOEs) like COCOBOD (Ghana Cocoa Board) and those in the energy sector, are responsible for about 25% of Ghana’s assessed debt burden.
Currently, the country’s total debt stock is unknown as the Bank of Ghana’s May 2023 Summary of Economic and Financial Data failed to provide an update on the country’s domestic and external debt stock as of March 2023. The data presented by the Central Bank pertained to December 2022, when Ghana’s total debt stock stood at an alarming GHS 434.6 billion or $52.2 billion, amounting to approximately 71.2% of GDP.
According to Mr. Ken Ofori Atta, going by this, the 25% stake of SOEs in the country’s total debt stock should amount to Ghc108.6bn.
Within this total debt stock, the external debt, he said, accounted for GHS 240.2 billion or $28.9 billion, equivalent to 39.4% of GDP, while the domestic debt stock was recorded at GHC 194.4 billion, making up 31.9% of GDP.
The finance minister expressed the belief that implementing better governance standards for these institutions will address their liabilities and foster their growth.
Gov’t Set To Implement Wide-Ranging Policies To Revitalize The Economy
The Finance Minister during a recent press conference stressed the significance of dedicated and extensive structural reforms to address various shortcomings and improve resilience in crucial areas.
These reforms, as communicated by Mr. Ofori Atta, cover tax policy and tax administration, expenditure commitment control and arrears clearance, financial stability, financial sector plans, review of statutory funds, governance and corruption, debt management, fiscal credibility, and reformation of SOEs in the energy and cocoa sectors.
The Finance Minister also emphasized a number of structural changes meant to promote fiscal restraint and transparency. These consist of improving tax administration and revenue management, operationalizing the Human Resource Management Information System (HRMIS), tightening expenditure controls and reducing arrears accumulation, and streamlining earmarked funds.
Not limited to that, Mr. Ofori-Atta further pointed out that the transition from central government reporting to general government reporting, as well as from a cash-based to accrual-based reporting, is currently being initiated by the government.
The government’s commitment to these reforms, its pursuit of innovation, and its desire for stronger collaborations were all underlined by the finance minister.
Mr. Ken Ofori-Atta also noted the government’s initiatives to win Ghana significant global backing, underpinned by the revitalized reform drive.
Read also: Securing IMF Deal Not An End To Current Challenges– Ofori-Atta
