Accra: Mr Seth Terkper, a former Finance Minister of Ghana, has strongly advised the government against borrowing funds to fulfill populist agendas that may lead to overwhelming national debt. During a virtual press briefing, Terkper emphasized the importance of prudent borrowing practices amid the country's recent agreement with the International Monetary Fund. According to Ghana News Agency, who now serves as the Executive Director of the Public Financial Management (PFM) Tax Africa Network, it is crucial for the government to ensure that the terms and interest rates of loans are manageable. He highlighted that investing borrowed funds to generate substantial returns and building strong financial buffers for timely repayment should be prioritized. Mr Terkper's comments came in light of Ghana reaching a staff-level agreement on the third review of its ongoing IMF loan-support program. During his tenure as finance minister, Mr Terkper was known for his cautious stance on borrowing. In his recent statements, he pointed out the challenges faced by countries like Ghana, where significant infrastructure projects can consume a large portion of annual revenues, necessitating some level of borrowing. However, he warned against excessive borrowing, which can lead to unsustainable debt levels. Furthermore, Mr Terkper advocated for increased domestic revenue mobilization through significant reforms. These reforms would include lowering taxes and removing "nuisance" taxes to boost compliance among individuals and businesses. He stressed that the country's current revenue was insufficient to finance major infrastructure projects such as roads, railways, and airports without prudent financial management. The former minister also called for the acceleration of debt repayment strategies by managing debt, including arrears and deficits responsibly. He suggested that additional revenues from rising commodity prices should be partly saved as financial buffers. Mr Terkper compared government debt management to household budgetin g, underscoring the importance of not living beyond one's means and learning from past experiences with debt relief programs.