General News of Thursday, 8 January 2015
Source: Graphic Online
The Minority in Parliament has said that contrary to the assertion by President John Mahama that monies his government has borrowed have been invested in development projects, the evidence in Parliament is that 94 percent of the increase in government spending has been for recurrent expenditure.
President Mahama in an interview with a Kumasi based radio station on Wednesday hit back at critics who have accused his administration of misappropriating loans meant for infrastructural development.
The President used the interview with Angel FM to commemorate the second year of his coronation to tell Ghanaians who want to know what development projects and programmes his government has committed the resources that has come his way, to relate to parliament.
He therefore rejected assertions that he had reduced governance to borrowing and said all the projects for which his administration secured loans can easily be tracked at Parliament.
“Every international agreement must be submitted to Parliament. So anyone who wants to see what we’ve done with the loans should go to Parliament. They will give them the documents –every single Parliament for which we’ve taken a loan, there is record of it at Parliament,” he said.
But in a reaction at a press conference Thursday morning, the Minority Leader in Parliament, Mr Osei Kyei Mensah Bonsu said, “the evidence is that 94percent of the increase in government spending has been for recurrent expenditure.”
“… what is shocking about this borrowing spree is that it has happened at the same time that capital expenditure as a percentage of GDP has unbelievably declined. In other words whereas you are borrowing massively, investments is diminishing.”