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John Jinapor, a member of the finance committee in parliament, believes that the current Akufo-Addo administration's reckless borrowing is to blame for Ghana's unparalleled economic catastrophe.
He places the blame at the President's feet, claiming that despite the state of the global economy, the massive borrowings have had no positive impact on the nation's economy.
"Nana Akufo-Addo is responsible for the catastrophe. There is an issue, and what we are seeing right now is unusual. Because of the massive borrowing, something must be amiss somewhere. As if tomorrow doesn't exist, we are borrowing. Government must stop borrowing carelessly going forward, according to John Jinapor.
The Yapei Kusawgu MP claimed that the government's unwillingness to invest in productive industries is sinking the economy in remarks made following the President's speech on the economy last Sunday.
"Managing an economy involves considering the short, medium, and long terms in addition to today. Borrowing money and investing it in profitable industries helps the economy thrive, creates jobs, increases income, and enables a country to weather economic headwinds, the MP continued.
Ghana's economy was lowered in recent international ratings as a result of the nation's inability to resolve its debt and liquidity problems.
Ghana has now gone to the International Monetary Fund (IMF) for a US$ 3 billion bailout due to its restricted access to the global financial system and difficulties in mobilizing domestic money to remedy the situation.
As part of a framework for the nation's post-COVID-19 program for economic growth and the IMF backing, President Akufo-Addo has accepted the economic collapse and presented a slew of macroeconomic and fiscal policies targeted at restoring the economy for at least the next three to six years.
According to the President, "We are trying to restore and sustain macroeconomic stability within the next three to six years, with an emphasis on ensuring debt sustainability to encourage lasting and inclusive growth while protecting the disadvantaged."
By bringing the overall public debt to GDP down to about 55% in present value terms by 2028 and keeping the service of external debt to no more than 18% of yearly revenue by the same year, the government hopes to restore and sustain debt sustainability.
Additionally, in order to compete with other nations in the West African sub-region, the State is committed to increasing the revenue collection effort from the existing tax-revenue to GDP ratio of (13%) to between 18 and 20%.