“There’s nothing wrong with government borrowing because it will create 1 million jobs for the youth” – NPP MP

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Dr Stephen Amoah

Member of Parliament for Nhyiaeso in the Ashanti Region, Dr Stephen Amoah has said the government is on the sure path to creating over a million jobs for the youth…the reason for the borrowing.

According to the member of Parliament’s Finance Committee, the government’s decision to borrow to carry out major projects which will ultimately create over 1 million jobs for the youth is not wrong.

Speaking on Joy News’ PM Express, Dr Stephen Amoah explained that the debt the government is incurring will repay itself in the long haul when jobs have been created for all and sundry.

“We are still collecting revenue. I don’t think raising 100 billion is too big for any government that is serious to concentrate on (employment). I know that our budgetary revenue generation has two major arms, taxes and debt.”

“The situation in which we find ourselves, revenue, we may not meet our bench mark so we will have to inevitably and uncontrollably rely on debt and there is nothing wrong with it if you don’t have any other option. So we shouldn’t create jobs?” he quizzed.

He also argued that through taxation, the government will pay for Ghana’s rising debt stock which has been ballooned due to constant borrowing.

“It is rather good for a long term goal, create the jobs today, the jobs could expand the industries, you generate revenue to stabilize the economy. That is the best mechanization of harmonizing your fiscal policy parameters.”

“It is done everywhere in the world. You can’t say that because there is a problem, you can’t generate revenue, and your debt stock going up so you sit idle and die? You will not create jobs? No, what you have to do is not to increase the burden on the people and that is why we are not trying to take taxes from them,” he explained.

Meanwhile, Ghana’s public debt stock shot up by ¢27.8 billion in April 2021 and May 2021 to ¢332.4 billion, the latest Summary of Economic and Financial Data by the Bank of Ghana has revealed.

This is equivalent to $57.9 billion, about 76.66 per cent of Gross Domestic Product.

In March 2021, the total debt stock stood at ¢304.6 billion, and the significant increase in the debt stock is due to the $3 billion Eurobond raised in March 2021 as well as the huge borrowing on the domestic market.

In April 2021, the public debt stock was ¢328.0 billion. This means ¢23.4 billion new debt was added to the total debt stock.

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