The government of Ghana has allocated GH¢13.9 billion in the 2027 Budget to settle outstanding legacy arrears. This provision is part of the government's broader expenditure framework of GH¢389.2 billion for the 2027 fiscal year. The allocation was announced by Finance Minister Dr Cassiel Ato Forson during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, 2026.
A significant portion of the arrears clearance allocation, GH¢4.3 billion, is earmarked to settle debts owed to Independent Power Producers (IPPs). This move is expected to address outstanding obligations and support the government's efforts to manage its expenditure commitments. The IPPs have been pressing for payment of their outstanding arrears, and this allocation is seen as a step towards resolving the issue.
The arrears clearance allocation comes alongside other energy-related provisions in the budget. A separate GH¢13 billion has been set aside to address energy sector payment obligations. This provision is expected to support the government's efforts to settle outstanding commitments in the energy sector and manage its expenditure obligations.
The government's decision to allocate GH¢13.9 billion to clear legacy arrears is seen as a move to restore credibility and demonstrate its commitment to honoring its debt obligations. The allocation is also expected to have a positive impact on the economy, as it will help to release pressure on the financial system and support businesses that have been affected by the outstanding arrears.
The 2027 Budget Statement and Economic Policy were presented to Parliament on November 12, 2026, by Finance Minister Dr Cassiel Ato Forson. The budget outlines the government's expenditure plans and economic policies for the 2027 fiscal year. The allocation of GH¢13.9 billion for legacy arrears clearance is a key component of the government's broader economic strategy.
The government's efforts to clear legacy arrears are part of a broader effort to restore macroeconomic stability and promote economic growth. The allocation of GH¢13.9 billion for this purpose is a significant step towards achieving this goal. The government is expected to continue implementing measures to ensure that its expenditure commitments are managed effectively and that outstanding arrears are cleared.
The 2027 Budget has made provisions for various sectors, including energy, infrastructure, and social services. The government's expenditure plans are aimed at promoting economic growth, reducing poverty, and improving living standards. The allocation of GH¢13.9 billion for legacy arrears clearance is an important part of this effort.
Key points
- The government has allocated GH¢13.9 billion to settle outstanding legacy arrears in the 2027 Budget.
- GH¢4.3 billion of the allocation is earmarked to settle debts owed to Independent Power Producers.
- The budget outlines the government's expenditure plans and economic policies for the 2027 fiscal year.
