Ghana must adopt global debt accounting standards to avoid fiscal space illusions – EGP Coordinator

AbdulKarim Mohammed, Coordinator of the Economic Governance Platform, has urged Ghana to adopt internationally accepted debt accounting standards to avoid misrepresenting its fiscal position and encouraging unsustainable borrowing.

Speaking at the CSO Budget Forum for the 2025 budget, he warned that inconsistent debt reporting such as omitting liabilities from deals like the Sinohydro infrastructure for bauxite arrangement, financial sector bailouts, and energy debts creates a false impression of fiscal space, leading to excessive borrowing.

He cautioned that planned tax abolitions, including the e-levy and COVID-19 levy, may result in revenue shortfalls that further strain public finances.

Mohammed also called for stringent expenditure control by reviewing the public sector wage bill, assessing overstaffed state-owned enterprises, and curbing fiscal leakages to restore economic stability.