Economy cannot be performing well if government borrows to pay salaries – Gideon Boako

Economy cannot be performing well if government borrows to pay salaries – Gideon Boako

The Deputy Ranking Member on Parliament’s Finance Committee and Member of Parliament for Tano North, Dr Gideon Boako, has questioned claims that Ghana’s economy is performing strongly, arguing that an economy cannot be described as healthy if government continues to borrow to finance recurrent expenditure. According to...

Dorcas Abedu-Kennedy
Jul 27
Economy cannot be performing well if government borrows to pay salaries – Gideon Boako

The Deputy Ranking Member on Parliament’s Finance Committee and Member of Parliament for Tano North, Dr Gideon Boako, has questioned claims that Ghana’s economy is performing strongly, arguing that an economy cannot be described as healthy if government continues to borrow to finance recurrent expenditure.

According to him, relying on loans to pay public sector salaries and fund programmes such as Free Senior High School (Free SHS) raises concerns about the sustainability of the country’s public finances.

Dr Boako said a strong economy should generate enough domestic revenue to finance key government obligations without depending on borrowing for routine expenses.

He argued that although the government continues to highlight improvements in macroeconomic indicators, its financing decisions suggest underlying fiscal challenges.

Speaking during a discussion on the 2026 Mid-Year Budget Review on Peace FM, the Tano North MP said the government’s actions do not align with its claims of economic recovery.

“An economy described as doing well should not be borrowing to pay salaries and fund Free SHS as we are seeing under this government,” he said.

Dr Boako’s comments come after government officials highlighted improved economic indicators, including declining inflation and progress in fiscal consolidation, as signs of recovery during the 2026 Mid-Year Budget Review.

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