Parliament urged to cap borrowing in constitution
Dr Richmond Atuahene, a banking and corporate governance consultant, has urged Parliament to impose a ceiling on borrowing in the Constitution to prevent the borrowing spree that has led the country into the economic quagmire it is in find.
“Failure to quickly establish a debt limit will lead to the current situation repeating itself again and again in the future and it is time for the country to follow in the footsteps of Kenya and Germany in establishing a debt limit. “, he suggested.
According to him, in the long term, the nation had to put a debt limit in the Constitution like Kenya has now done with 50% and could not go further than that because the nation keeps moving forward and then come back.
Dr Atuahene said those who have looked at the Constitution and said the Constitution does not need to be changed should rest assured that Germany has it, even Americans who borrow have set a debt ceiling, unfortunately for Ghana that she had borrowed.
“The inability of successive governments to use borrowed money to develop and provide sustainable infrastructure to support and help the economy, more often than not the borrowed money is used to pay compensation instead of being invested in productive businesses that can earn the country foreign currency that should be avoided at all costs.
“But if you borrow and you don’t even make a strategic investment that will work to pay for itself, we will have arguments and discussions over the next 20 years and the next 40 years because our infrastructure can’t even support and help expanding the economy, but we keep saying we are building the economy,” lamented Dr Atuahene.
He pointed out that borrowing for consumption came with such a challenge because Ghana is a country that she did not want to borrow to expand the infrastructure or the system that would bring in foreign currency, adding that “but if you borrow to pay some payments and what has you and refinancing, at the end of it all, we’re going to have a challenge”.