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A renowned Economist and a senior lecturer at the Kwame Nkrumah University of Science and Technology (KNUST), Mr. Kissi Boafo says the reason for which Mahama-NDC government has increased fuel prices is to cut down the country’s drowning debt.

According to him, the Mahama administration took advantage of the fact that petroleum products and crude oil in the world market are scaling down to increase the fuel prices as a means to pay off some debts suppressing the growth of the economy.

Speaking on Okay Fm’s Ade Akye Abia Morning Show, Mr. Kissi Boafo chided the decision of the Mahama government to increase fuel prices when Ghanaians are already battling the utility tariff increment.

“We should admit that Ghana has a problem of debt; we are drowning in debt and so the government must find any means necessary to reduce the debt…anybody who says Ghana has no problem is a liar. We owe a lot which we have not paid and that explains why the government is making sure that it takes away some of the debts,” he hinted.

He further revealed that the country’s debt is so much that government couldn’t meet the statutory payment to ECG and VRA; reiterating that Ghana is highly in debt to the extent that government has not even paid the District Assembly Common Fund.

He stressed that the problem associated with the Mahama administration is the payment of huge interests on the various loans borrowed; emphasizing that the government has borrowed excessively.

“So paying huge interests on the borrowings and paying workers salaries have drown the country…government has no room to do a lot of infrastructure and Ghanaians are the affected ones to pay the taxes on petroleum and other things to settle the debts,” he stated.