Ato Forson Reveals How Mahama Government Will Fund US$13 Billion New Economy Programme Without Borro

Finance Minister Dr Cassiel Ato Forson has announced that the government intends to invest at least US$13 billion in its proposed New Economy Programme between 2027 and 2030 without contracting additional loans.

According to the Finance Minister, the ambitious economic transformation initiative will be financed through domestic revenue mobilisation and adjustments to the government’s fiscal targets rather than relying on fresh borrowing.

Dr Ato Forson disclosed the funding strategy during an engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST), where he addressed concerns about how the government intends to raise the substantial amount required for the programme.

He explained that the government plans to dedicate an amount equivalent to 1.5 per cent of Ghana’s Gross Domestic Product (GDP) annually to finance the initiative.

Under the proposed arrangement, 0.5 per cent of GDP will come directly from government revenue, while the remaining 1 per cent will be made available by reducing the primary surplus target from 1.5 per cent to 0.5 per cent of GDP.

The Minister believes the approach will create sufficient fiscal space to finance priority investments without increasing the country’s public debt.

He also reiterated the government’s commitment to reducing Ghana’s debt-to-GDP ratio to 45 per cent by 2028.

To support this target, Dr Ato Forson pointed to the primary surplus of 2.5 per cent of GDP recorded in 2025 and the projected 1.5 per cent surplus for 2026, which he said would contribute to debt reduction equivalent to approximately 4 per cent of GDP.

However, from 2027, the government intends to moderate the pace of debt reduction to create additional resources for investments under the New Economy Programme.

He maintained that the strategy would allow Ghana to pursue economic transformation, support productive sectors and create employment opportunities while keeping public debt on a sustainable path.

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