Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, has called for the imposition of a strict debt ceiling to curb Ghana’s increasing debt levels.
Speaking at a recent forum, Prof. Quartey emphasized the need for fiscal discipline to prevent the country from falling deeper into unsustainable debt. He highlighted that while borrowing is necessary for national development, excessive debt accumulation without proper management can negatively impact the economy.
He noted that Ghana’s capital expenditure, which is crucial for infrastructure and development, has significantly declined despite increasing government borrowing. He stressed that borrowed funds should be used for productive investments that generate revenue rather than recurrent expenditure.
Prof. Quartey also warned that without proper debt control mechanisms, Ghana risks facing further economic difficulties, including higher interest payments, limited fiscal space for essential services, and reduced investor confidence.
As part of the solution, he suggested that the government strengthen financial management systems, ensure transparency in public spending, and diversify revenue sources to reduce dependence on external loans.
His comments come amid ongoing concerns about Ghana’s debt sustainability, especially following the recent debt restructuring efforts under the International Monetary Fund (IMF) program.