 borrowing, warning that the total amount borrowed from the market is projected to hit GH₵72 billion by March 7, 2025.){kind=link}
The Member of Parliament for Tano North Constituency, Dr. Gideon Boako, has raised alarms over the government’s excessive reliance on Treasury bill (T-bill) borrowing, warning that the total amount borrowed from the market is projected to hit GH₵72 billion by March 7, 2025.
Dr. Boako made this revelation while speaking in Parliament on Tuesday, March 4, during the debate on President Mahama’s State of the Nation Address (SONA). He expressed deep concerns over the sustainability of the government’s short-term borrowing strategy, questioning how the state intends to service this growing debt without putting additional pressure on taxpayers.
Fiscal Management Concerns
Dr. Boako criticized the government’s borrowing trend, arguing that it reflects poor fiscal management that could worsen Ghana’s economic situation.
“This level of borrowing from the T-bill market is unsustainable and raises serious concerns about the government’s fiscal management. We must ask ourselves—how does the government intend to service this rising debt without further burdening the taxpayer?” he questioned.Impact on Private Sector Growth
Beyond the risks of rising debt, Dr. Boako warned that the government’s domination of the T-bill market was crowding out the private sector, making it harder for businesses to access credit at reasonable rates.
“When the government continues to dominate the T-bill market, it reduces the availability of funds for businesses to borrow at competitive rates. This will inevitably slow down private sector expansion and job creation,” he stated.