Here’s How Government Will Fund Its US$13bn Economic Programme Without Adding to Ghana’s Debt

The Minister of Finance, Dr Cassiel Ato Forson, has assured Ghanaians that the government will not resort to additional borrowing to finance its proposed New Economy Programme, stating that the initiative will be funded through domestic revenue mobilisation and savings generated from fiscal consolidation.

He disclosed that the government intends to allocate 1.5 per cent of Gross Domestic Product (GDP) annually to the programme between 2027 and 2030 without increasing the country’s public debt.

Dr Ato Forson made this known during an interactive engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST), where he addressed concerns about the proposed programme’s funding arrangements.

He explained that the government had identified two main sources of funding.

These include allocating 0.5 per cent of GDP from government revenue and reducing the primary surplus target from 1.5 per cent to 0.5 per cent of GDP.

According to the Finance Minister, the combination of these measures would create the necessary fiscal space to finance the programme, with the total investment potentially reaching at least US$13 billion over the four-year period.

Dr Ato Forson also clarified that the Ghana Gold Board (GoldBod) does not generate revenue for the Ministry of Finance or the government.

He explained that the country’s public finances are mainly supported by direct taxes, indirect taxes and non-tax revenue.

He further reaffirmed the government’s commitment to its debt sustainability objectives, particularly the target of reducing public debt to 45 per cent of GDP by 2028.

To demonstrate progress towards this goal, the Finance Minister highlighted improvements in Ghana’s primary balance, noting that the country recorded a primary surplus equivalent to 2.5 per cent of GDP in 2025, with an additional 1.5 per cent surplus projected for 2026.

He indicated that the two surpluses would collectively contribute to a reduction in public debt equivalent to approximately four per cent of GDP.

However, beginning in 2027, the government plans to moderate the pace of debt reduction to 0.5 per cent of GDP annually.

This adjustment is expected to release additional fiscal resources for investment in the New Economy Programme.

Dr Ato Forson maintained that the proposed funding strategy would allow the government to advance its economic transformation agenda while sustaining a downward trajectory in public debt.

Source: https://www.citinewsroom.com/2026/11/govt-wont-borrow-to-finance-new-economy-programme-ato-forson/

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