Hon Kennedy Osei Nyarko, the incumbent Member of Parliament for Akim Swedru under the New Patriotic Party (NPP), said that the Mahama-led administration borrowed GH¢67 billion from the treasury bill (T-bill) market in the first two months of 2025.
He brought attention to the government’s significant reliance on short-term borrowing in a Facebook post on Sunday, March 2.
“As at the end of Friday’s auction, the total borrowing from the T-bill market from January 10th to February 28th is 67 billion cedis,” he stated.
The disclosure has raised questions about the sustainability of the government’s budgetary plan and the high amounts of short-term borrowing.
Although Treasury bills are still a vital source of funding for government spending, an over-reliance on them may drive up interest rates and inflation.
Some economists caution that this tendency may result in increased borrowing costs and fewer private sector credit options.
As Dr. Cassiel Ato Forson, the Finance Minister, gets ready to unveil the 2025 budget, Osei Nyarko’s remarks are timely.
The introduction of measures to lessen the government’s reliance on domestic debt is something that many stakeholders are eager to see.
The amount borrowed thus far has sparked concerns about the administration’s strategy for handling the nation’s financial difficulties while fostering long-term economic expansion.
The government is anticipated to disclose its overall economic plan, which includes attempts to stabilize the national debt, in the budget presentation that is just a few days away.
The implementation of alternative revenue mechanisms to alleviate the strain on the Treasury bill market and guarantee long-term financial stability will be determined in the upcoming weeks.
