Economic Analyst, Richmond Frimpong, is pointing out that Ghana’s Gross Domestic Product (GDP) growth rate will suffer if stimulus packages are not paid back.
According to him, the funds borrowed are from external sources with interest charges. This means the monies will be paid back with interest.
Former President John Dramani Mahama is promising to make stimulus packages free once voted into power but Richmond Frimpong thinks it’s practically impossible.
He indicated that for Mahama’s promise to happen, it will depend on a number of things.
However, he holds that stimulus packages are meant to stimulate the economy hence his expectation is that “we know exactly how much we’ve given out as loans going to stimulate to see off as output in terms of GDP. If those figures come out in real time and they do so much so that our GDP can now hold the debt that went out.”
Meanwhile, he explained that government can decide to either reduce or scrap the interest rate on return payment.
“The government can choose to say maybe they can pay them at a lesser rate but to say it’s for free will be strange because those funds were not funds that were internally generated from our revenues. They were funds that we went borrowing for and so for nothing at all, we have to pay those funds back, the same way we gave them out,” he said.
Latest Stories
-
19 steps for getting over even the most devastating breakup fast
3 hours -
8th Ghana CEO Summit launched with focus on AI transformation, economic diversification
3 hours -
Prof Opoku-Agyemang has not been given a fair appraisal – Ablakwa
4 hours -
Rainstorm wreaks havoc in Keta and Anloga districts, residents count their losses
4 hours -
Global Plastics Treaty negotiations begin in Ottawa as countries converge on phasing out problematic plastic uses
4 hours -
Support energy alternatives adoption to sustain businesses – GUTA tells government
4 hours -
11th DRIF opens in Accra with a call on governments to focus on digital inclusion
4 hours -
Stakeholders outline plans at RE4C Coalition’s General Assembly in Accra
4 hours -
Women Need ‘shock observers’ for active political participation – Ex-Bauchi Assembly Member
4 hours -
2024 polls: Stop fighting over positions in Mahama’s next government – Asiedu Nketiah
4 hours -
Although people may not always listen to the lyrics, there’s still a market for rap in Ghana – E.L.
4 hours -
Passengers appeal to transport operators to officially announce new fares
5 hours -
Damongo: About 400 NPP Members resign over Minister’s alleged meddling in chieftaincy affairs
5 hours -
Next NDC government will pay special attention to women – Naana Opoku-Agyemang
5 hours -
Amerado is singing and it’s good he’s doing that – Lyrical Joe
5 hours