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Minister of State in charge of Government Communications, Felix Kwakye Ofosu, has revealed that Ghana’s escalating debt servicing obligations will consume nearly all of the country’s tax revenue, leaving little room for other essential public expenditures.
In a stark warning on January 25, Kwakye Ofosu outlined the government’s growing financial burden, noting that the debt servicing payment made on January 2nd amounted to $364 million.
This is just the beginning, as Ghana faces a staggering $6.1 billion payment by the end of February, and projections show the debt servicing figure will rise to a massive $180 billion next year.
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“What it means is that all the taxes you and I pay, and everything else that we do in this country that goes into our budgets, all of it will be used to pay debt servicing,” the minister stated. With Ghana’s national budget barely surpassing $200 billion, Kwakye Ofosu emphasised the severe constraints this situation will place on the country’s financial flexibility.
The minister’s comments come as the government works to navigate the perilous financial path ahead, warning that failure to meet the debt obligations could lead to a devastating default. Kwakye Ofosu also pointed to the excessive borrowing during the previous administration as a contributing factor to the current crisis.
Despite these challenges, Kwakye Ofosu assured the public that the government remains committed to addressing the crisis and ensuring transparency in managing the country’s finances.
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