Ranking Member on Parliament’s Finance Committee, Dr Cassiel Ato Forson has projected Ghana’s public debt to reach 83% of GDP by December 2021.

According to him, the Ministry of Finance had failed to factor in some key elements when calculating Ghana’s public debt to GDP ratio thus creating a conservative image of the true reality of the country’s debt problem.

Speaking on JoyNews’ PM Express, he stated that the Finance Ministry had calculated that Ghana’s debt to GDP ratio was at 78% when it actual fact it should have been at 81%.

“As of November, the math points to the fact that it was 81% of GDP, yes I’ve heard the Ministry actually 78% of GDP.

“But it is important for us to note that this excludes the Energy Sector Levies Bond (ESLA) bond. This excludes the Sinohydro money and the GETFund securitization, which we call the Daakye. It excludes them. If you’re to add all of them, you’re talking of 81%,” he said.

Dr Ato Forson explained that the conservative calculation done by the Finance Ministry significantly creates a smokescreen to the very dire situation the country’s economy is in.

“For instance, we have borrowed ¢9.3 billion on the back of Energy Sector Bonds, we have borrowed about ¢2.3 billion on the back of GETFund receivables. All of these, you’re using the same tax revenue to pay.

“So the tax revenue or revenue of ₵100 billion you’re reporting includes the Energy Sector Levies Act, the proceeds coming from there, but when it comes to the interest payment you’re excluding that and you are underreporting,” he said.