Vice President Paa Kwesi Amissah Arthur says NPP Vice-presidential candidate failed to demonstrate an understanding of basic economics when he delivered a lecture castigating government for its failed economic policies.
He said Bawumia got it “very wrong” when he claimed that government has strangled economic growth because it pays huge interests on loans than it invests in the economy.
At an economic lecture organised last week Thursday, the former deputy Governor of the Bank of Ghana, Dr. Mahamudu Bawumia accused government of recklessly mismanaging the nation’s economy.
In a bashing spree, Bawumia said that economic data from 2014 to date shows that interest payments have now incredibly exceeded infrastructure expenditure.
“How can an economy be on an upward growth path when interest payments exceed infrastructure expenditure?” he jabbed and called on Ghanaians to vote out the governing NDC during the December general elections.
Providing a response to this claim, Paa Kwesi Amissah Arthur who is a former Governor of the Bank of Ghana explained that paying interest on a loan used to construct social infrastructure is in itself a capital expenditure.
“There is no way you are paying interest for nothing at all. You pay interest only for projects you have borrowed money for. So how can you say we paid interest more than expenditure? It is that capital expenditure money that you are paying as interest.”
Speaking at Ashaiman during the launch of Greater Accra Zonal Campaign team Sunday, Amissah Arthur criticised Bawumia for failing to understand a “simple concept.”
“This one it is a simple thing that we learn in primary school. I don’t see how people who have qualification cannot understand that simple concept,” he said.