The Ghanaian government has clarified its plan to fund the New Economy Programme without contracting additional loans. According to Dr. Cassiel Ato Forson, the Minister of Finance, the programme will be financed through domestic revenue and savings from fiscal consolidation. The government plans to commit 1.5 per cent of Gross Domestic Product (GDP) annually between 2027 and 2030 to the programme.
Dr. Ato Forson explained that the funding for the programme will come from two main sources. Firstly, 0.5 per cent of GDP from government revenue will be allocated. Secondly, the primary surplus target will be reduced from 1.5 per cent to 0.5 per cent of GDP. This adjustment will create the necessary fiscal space to invest in the programme. The total allocation is expected to reach at least US$13 billion over the four-year period.
The Finance Minister addressed concerns about the source of funding during an interactive engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST). He emphasized that the government remains committed to its debt sustainability commitments, including reducing public debt to 45 per cent of GDP by 2028.
Dr. Ato Forson also clarified the role of the Ghana Gold Board (GoldBod) in generating revenue for the Ministry of Finance or the government. He stated that the state’s finances are primarily supported by direct taxes, indirect taxes, and non-tax revenue. The Ghana Gold Board does not contribute to the government's revenue.
The Minister of Finance cited improvements in the country’s primary balance as evidence of the government’s commitment to debt reduction. Ghana recorded a primary surplus of 2.5 per cent of GDP in 2025 and is expected to achieve a further surplus of 1.5 per cent in 2026. These surpluses will contribute to a debt reduction equivalent to approximately 4 per cent of GDP.
From 2027, the government intends to slow the pace of debt reduction to 0.5 per cent of GDP annually. This adjustment will free up additional fiscal space to support investments under the New Economy Programme. Dr. Ato Forson maintained that the funding arrangement will enable the government to pursue its economic transformation agenda while keeping public debt on a declining path.
The government’s strategy aims to balance economic growth with fiscal responsibility. By utilizing domestic resources and savings from fiscal consolidation, the government seeks to implement the New Economy Programme without compromising its debt sustainability goals. The programme is expected to drive economic growth and development in Ghana.
Key points
- The Ghanaian government will commit 1.5 per cent of GDP annually to the New Economy Programme from 2027 to 2030.
- The programme will be funded through domestic revenue and savings from fiscal consolidation, not through borrowing.
- The government aims to reduce public debt to 45 per cent of GDP by 2028.
