Financial analyst cautions government against election-year borrowing
Published:
3 months ago
Source:
GhanaWeb
Financial analyst Leslie Dwight Mensah has raised concerns about the potential dangers of increased borrowing ahead of Ghana's December 2024 elections, urging the government to exercise caution to prevent undermining the country's delicate economic recovery. Leslie Mensah pointed out a troubling pattern, noting that Ghana typically ramps up its borrowing by nearly 50% during election years compared to non-election periods. He emphasized that continuing this practice under the current economic conditions could have severe consequences, especially as the nation is still grappling with the aftermath of a significant financial crisis.
"If we repeat past behaviors, the outcome could be catastrophic," Howard warned. He explained that excessive borrowing could disrupt the progress made through the International Monetary Fund (IMF) program, which has played a key role in restructuring Ghana's debt. Failing to adhere to the program's objectives could lead to another round of difficult economic adjustments after the elections, further burdening the country's finances.