The Minority in Parliament has expressed concern over growing debt stock which they claim if not managed properly could send the country back to HIPC.
In their estimation, the debt situation was pushing the country to a level that could be best classified as a debt distressed state.
â€œWhen you have a one-off GDP boom as result of oil and hide behind to say the economy is doing well it is a mistakeâ€.
Mr Cassel Ato Forson, the Ranking Member on Finance raised the alarm when he spoke to the media in Parliament after the report of the Finance Committee on the annual public debt for 2017 financial year was presented to the House.
Mr Forson also stated that the New Patriotic Party (NPP) administration inherited a debt of GHÂ¢122.3 billion as at 31st December, 2016, and that by December 31, 2017 the countryâ€™s debt stock had increased to GHÂ¢142.6 billion.
He said the amount excluded the recently issued energy sector bond of GHÂ¢4.7 billion as well as UT and Capital bank bond of GHÂ¢2.3 billion.
He said within the past 12 months the NPP administration added GHÂ¢28 billion to the countryâ€™s debt stock and stated that despite governmentâ€™s increasing debt, they had nothing tangible to show for the expenditure.
He said the government must invest the borrowing into concrete projects that could repay for itself.
â€œIf you go out there and borrow for consumption the multiplier effect is zeroâ€ he said.
Mr Forson also expressed concern about government announcing new policies, which were not backed by revenue and that in the long term it was likely to increase the debt of the country.
He said over GHÂ¢5 billion out of the $2.25 billion (GHÂ¢9.3 billion) which the Minister of Finance announced was going to be used for debt re-profiling was not used for its intended purpose and urged the various State Own
Enterprises (SOEs) to be responsive and responsible to repay their debt to the state.
He said the government secured about GHÂ¢10 billion loans for the SOEs and for now their debt service was overdue for most of them and they were not paying.
â€œThe SOEs the way they are going are also going to drag the nation into the debt distress situationâ€ he added.
Mr Fuseini Issah, Member of the Finance Committee in his reaction debunked the claims of the minority saying the economy was now in a better shape than in 2016.
He said all the indices in the economy pointed to a better trajectory due the sound macro-economic policies put in place by the government.
He said in 2017, the government focused on five cardinal areas; revenue management, expenditure management, the wage bill, the debt situation and also introduced the capping law which helped to sustain the economy last year.
Mr Issah also stated that the NPP administration inherited an economy with a debt of over GHÂ¢122 billion and the debts were growing at 36 percent.
He said however in 2017, the countryâ€™s debts grew by only 13 percent showing marked improvement over 2016.
He said the addition to current stock of debt was GHÂ¢20.2 billion not the GHÂ¢28 billion the minority would want the world to believe.
Mr Issah also stated the NPP government had been able to manage the countryâ€™s debt much better than the previous administration and also refuted the minorityâ€™s claim that the country was heading back to HIPC saying the current government had been able to manage the debt situation on more sustainable basis.