Minority Alleges Government Borrowed GH¢7 Billion from T-Bills to Settle Contractors

The Minority in Parliament has expressed concerns regarding the government’s recent borrowing of GH¢7 billion from the treasury bills market to compensate contractors outside of its budgetary allocations.

According to the Minority, this practice of extending expenditure beyond the budget for political purposes is contributing to the depreciation of the Cedi against the dollar.

During a press briefing on Wednesday, May 15, the Minority Leader, Dr. Cassiel Ato Forson, criticized the government’s spending habits and called for fiscal discipline.

“They are spending money recklessly, as if there is no tomorrow. In the last few days, we are aware that they have paid approximately GH¢7 billion to contractors, off-budget contractors, off-budget expenditures, GH¢7 billion,” stated Dr. Forson.

He further explained, “They borrowed from the T-Bill market, so they borrowed the money from ordinary Ghanaians, then they paid this money to these contractors, and the contractors are also not certain so they have engaged in currency substitution.”

Dr. Forson highlighted that the contractors received Cedis and converted them into US dollars due to a lack of confidence in the economy.