Ghana’s former Finance Minister, Seth Terkper, says the government could be using Covid-19 funds to finance existing debts on the blind side of Ghanaians.
According to Mr Terkper, funds needed to fully fight the pandemic has been exceeded through the $ 1 billion International Monetary Fund loan, $219 million drawdowns from the Stabilisation Fund, the World Bank loan as well as the funds accrued from the National Covid-19 Trust Fund.
Despite having enough resources to finance the many adverse impacts associated with the pandemic, the government continues to borrow under the guise of using it for Covid-19.
His assertion follows the GHS 10 billion support requested by the Government of Ghana from the Central Bank to finance its budget deficit as a result of the pandemic.
The former Finance Minister, in a media interaction on Friday, demanded that the government comes clear on what it is financing with funds accrued under the guise of using it to fight the global pandemic.
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“Government is using funds from Covid-19 to finance something and is not Covid-19, government has to come clear and tell Ghanaians what it is financing with Covid-19 funds. We are not against the idea of borrowing to finance debts, but the issue is that don’t use Covid-19 as a cover up or an excuse for it,” he said.
The Finance Minister, Ken Ofori-Atta, in accordance with Section 28 of the Public Financial Management Act, 2016 (Act 921), is scheduled to present the mid-year budget review on Thursday, July 23, 2020.
The Minister is expected to touch on the progress made so far by the government on the fight against the Covid-19 pandemic on the back of approved loans and drawdowns from State funds by Parliament.
