Government would reduce expenditure to help service its debts – Abena Osei-Asare

Government committed to reducing Ghana’s indebtedness – Abena Osei-Asare

Government policies currently working, Deputy finance minister

Current economic variables sustainable, Osei-Asare

A Deputy Finance Minister, Abena Osei-Asare, has said government is putting stringent measures in place to reduce the level of Ghana’s indebtedness.

In an interview on the Big Bulletin on Asaase Radio, the deputy minister said in addition to efforts to grow Ghana’s economy, government would cut down its expenditure to help service its debts.

“If we try to boost economic growth, clearly trade activities will go on and the government will be able to raise more revenue. If we try to reduce our expenditure; what we call expenditure rationalization, definitely we’ll be in a better position to service these debts,” Osei Asare was quoted by asaaseradio.com.

She also said although the International Monetary Fund (IMF) indicated there was a risk of debt stress for Ghana, the current inflation and the interest were highly sustainable and would go a long way to boost economic activities.

“If we check inflation and the interest, it’ll go a long way to boost the economy and give some hope that we are in a position to service our debts. The IMF said there’s a risk of debt distress but it doesn’t mean they’re unsustainable. So, clearly, they’re looking at other factors and we have to look at other factors not only the interest that we’re paying but look at the growth,” she said.

Abena Osei-Asare further stated that the country was recovering from the impact of the COVID-19 with business activities picking up adding that Ghana Revenue Authority (GRA) has exceeded its 2021 revenue targets which, according to her, show that the government’s policies were working.

“We have seen some growth, businesses are picking up again and to let you know, GRA in 2021 went over and above its targets clearly, it tells you that measures that the government are putting in place is working and is the same measures that we’re going to implement in 2022, we’re going to make sure that we bring debts to sustainable levels and at the same time, raise the needed revenue to be able to thrive,” she said. Read Full Story