Ghana’s actual public debt for the 2024 financial year stood at GH¢737.17 billion, significantly lower than the GH¢876.08 billion reported in the government’s consolidated financial statements, according to the latest Auditor-General’s Report.
The findings indicate an overstatement of GH¢138.91 billion, which the Auditor-General attributes to discrepancies between records from the Ministry of Finance and the Whole of Government Accounts (WGA).
The overstatement, detailed in the Auditor-General’s review of public debt, highlights variances in both domestic and external debt figures, as well as loans attributed to Cocobod.
“Section 54 of the Public Financial Management Act, 2016 (Act 921), mandates that public debt be fully and accurately reported,” the report states, noting the need for financial statements to present a faithful representation of the country’s fiscal position.
According to the report, external debt was overstated by GH¢1.77 billion, while domestic debt was overstated by GH¢132.98 billion. Cocobod’s domestic debt was also inflated by GH¢4.15 billion, while its external debt was slightly understated by GH¢2.1 million.
The report warns that the inflated figures could mislead the public and stakeholders regarding the country’s debt sustainability.
It calls for improved reconciliation practices between the Ministry of Finance and accounting entities to ensure accuracy and transparency in public financial reporting.
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