The Minister of Finance, Dr Cassiel Ato Forson, has assured that the government will not contract additional loans to finance its proposed New Economy Programme, insisting that the initiative will be funded through domestic revenue and savings from fiscal consolidation.
He said the government plans to commit 1.5 per cent of Gross Domestic Product (GDP) annually between 2027 and 2030 to the programme without adding to the country’s public debt.
Dr Ato Forson was responding to concerns about the source of funding for the programme during an interactive engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST).
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He explained that the funding would come from two main sources: an allocation of 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.
According to him, the two sources would create the fiscal space needed to invest in the programme, with the total allocation potentially reaching at least US$13 billion over the four-year period.
The Finance Minister also clarified that the Ghana Gold Board (GoldBod) does not generate revenue for the Ministry of Finance or the government. He explained that the state’s finances are primarily supported by direct taxes, indirect taxes and non-tax revenue.
He further maintained that the government would continue to honour its debt sustainability commitments, including the target of reducing public debt to 45 per cent of GDP by 2028.
Dr Ato Forson cited improvements in the country’s primary balance as evidence of the government’s commitment to debt reduction.
He said Ghana recorded a primary surplus of 2.5 per cent of GDP in 2025, while a further surplus of 1.5 per cent is expected in 2026.
He explained that the two surpluses would collectively contribute to a debt reduction equivalent to approximately 4 per cent of GDP.
However, from 2027, the government intends to slow the pace of debt reduction to 0.5 per cent of GDP annually, freeing up additional fiscal space to support investments under the New Economy Programme.
Dr Ato Forson maintained that the funding arrangement would enable the government to pursue its economic transformation agenda while keeping public debt on a declining path.
