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.
“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.