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Politics of Thursday, 16 May 2024

    

Source: www.ghanaweb.live

Gov't has borrowed GH¢7bn from T-Bills to pay contractors – Minority alleges

Leaders of the Minority Caucus in Parliament Leaders of the Minority Caucus in Parliament

The Minority in Parliament has expressed concerns regarding the government's recent borrowing of GH¢7 billion from the treasury bills market to compensate contractors, a move they claim extends expenditure beyond budgetary allocations and exacerbates currency depreciation.

Speaking to the media on Wednesday, May 15, Minority Leader Dr. Cassiel Ato Forson criticised the government's fiscal practices, labeling them as reckless and urging for enhanced fiscal discipline.

"They are on an expenditure spree, spending money as if there is no tomorrow. In the last few days, we are aware that they have paid approximately GH¢7 billion to contractors, off-budget contractors, off-budget expenditures, GH¢7 billion," stated Dr. Forson.

He highlighted that this sum was sourced from the T-Bill market, effectively borrowing from the public, and then redirected to these contractors.

Dr. Forson further expressed concerns that the contractors, uncertain about economic stability, converted their payments into US dollars, contributing to further currency substitution and undermining confidence in the local economy.