According to a report by the research wing of finance powerhouse, Group Ndoum, Government has ended the first quarter of this year spending more than it had targeted.
According to the economic report, the government ended the first quarter of 2015 spending a total of 16.08 billion Ghana cedis from the domestic market, representing about 3.37 billion Ghana cedis more than what government had set to borrow for the first three months of this year.
The report also revealed that the percentage of the domestic debt, which stood at 76 billion Ghana cedis as at December has gone up by 53 percent.
The government is hoping to borrow about 25 billion Ghana cedis for the next half of this year, however, Head of Research at GN Group, Samuel Kofi Ampah, says the development is not good.
According to him, a 25 billion Ghana cedis additional debt could sink government into a deep debt trap that could increase the cost of borrowing for the private sector.
Source: GN
