The government plans to mobilise at least US$13 billion for its proposed New Economy Programme over four years, relying on domestic revenue and fiscal savings rather than additional borrowing, Finance Minister Dr Cassiel Ato Forson has disclosed.
Under the proposed arrangement, the government will commit 1.5 per cent of Gross Domestic Product (GDP) annually to the programme from 2027 to 2030, while maintaining its commitment to reducing 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 government’s ability to finance the initiative without worsening the country’s debt position.
He explained that the funding strategy would be anchored on two key fiscal measures: 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, these measures would create the necessary fiscal space to support investments under the programme without requiring the government to contract new loans.
He stressed that the proposed funding arrangement was consistent with the government’s broader objective of transforming the economy while safeguarding public finances.
Dr Ato Forson also clarified that the Ghana Gold Board (GoldBod) was not a revenue-generating institution for the Ministry of Finance or the government. He noted that government revenue was primarily derived from direct taxes, indirect taxes and non-tax revenue.
On the country’s debt management strategy, the Finance Minister reaffirmed the government’s commitment to reducing public debt to 45 per cent of GDP by 2028.
He pointed to improvements in Ghana’s primary balance as evidence of progress towards that target, indicating that the country recorded a primary surplus of 2.5 per cent of GDP in 2025, with a further surplus of 1.5 per cent projected for 2026.
He said the combined surpluses would contribute to a debt reduction equivalent to approximately 4 per cent of GDP.
However, beginning in 2027, the government intends to moderate the pace of debt reduction to 0.5 per cent of GDP annually to release additional resources for investment in the New Economy Programme.
Dr Ato Forson maintained that the approach would strike a balance between fiscal discipline and economic expansion, allowing the government to finance its transformation agenda without reversing the progress made in debt sustainability.
Source: www.kumasimail.com
