The Member of Parliament for Tano North Constituency, Dr. Gideon Boako, has disclosed that the government’s total borrowing from the Treasury bill (T-bill) market is projected to reach GH¢72 billion by today 7th March, 2025.
Speaking in Parliament on Tuesday, during the debate on President Mahama’s State of the Nation Address (SONA), Dr Boako expressed deep concern over the growing reliance on short-term borrowing.
He highlighted that the government’s increasing dependence on T-bills could have significant economic consequences.
“This level of borrowing from the T-bill market is unsustainable and raises serious concerns about the government’s fiscal management. We must ask ourselves, how does the government intend to service this rising debt without further burdening the taxpayer?” he questioned.
Dr. Boako further argued that the borrowing trend was limiting private sector access to credit, creating a crowding-out effect that could stifle economic growth.
“When the government continues to dominate the T-bill market, it reduces the availability of funds for businesses to borrow at competitive rates. This will inevitably slow down private sector expansion and job creation,” Dr Boako stated.
He has therefore called on government to adopt a more strategic approach to debt management.
“We cannot continue down this path. The government must rethink its fiscal strategy and focus on securing long-term, lower-interest financing options. Over-reliance on short-term instruments like T-bills is not a sustainable way to run an economy,” he concluded.
