Ato Forson Reveals How Mahama Government Plans to Raise US$13 Billion Without Borrowing

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, explaining that the initiative will be supported by domestic revenue and savings generated through 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 session 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 proposed initiative would be funded.

According to the Finance Minister, the funding strategy will rely on two major sources.

These include an allocation equivalent to 0.5 per cent of GDP from government revenue and a reduction in the primary surplus target from 1.5 per cent to 0.5 per cent of GDP.

He explained that the two measures would provide the necessary fiscal room for the government to finance the programme, with total investments projected to reach at least US$13 billion over the four-year implementation period.

The Finance Minister also clarified the role of the Ghana Gold Board (GoldBod) in government financing, stressing that the institution does not generate revenue for the Ministry of Finance or the state.

He noted that government revenue is mainly derived from direct taxation, indirect taxes and non-tax sources.

Dr Ato Forson further reaffirmed the government’s commitment to its debt sustainability objectives, including the plan to reduce public debt to 45 per cent of GDP by 2028.

To demonstrate progress towards this target, he highlighted improvements in Ghana’s primary balance, indicating that the country recorded a primary surplus equivalent to 2.5 per cent of GDP in 2025.

He added that the government is targeting another primary surplus of 1.5 per cent of GDP in 2026.

Together, the two surpluses are expected to 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 investments under the New Economy Programme.

Dr Ato Forson maintained that the proposed financing framework would allow the government to pursue its economic transformation objectives while ensuring that the country’s public debt continues on a downward trajectory.

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

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