“Debt Is Draining Ghana’s Development Funds”— Veep Jane Naana Warns, Calls for Strict Fiscal Discipline

Vice President Prof. Jane Naana Opoku-Agyemang has cautioned that Ghana’s heavy debt obligations continue to divert vital resources away from critical development projects, stressing the need for prudent fiscal management and sustained economic reforms.

She noted that funds that should be channelled into infrastructure and other priority sectors are instead being used to service debt, making it essential for government to stay committed to its fiscal consolidation agenda.

“Every decision made by the Ministry ultimately affects the lives of ordinary Ghanaians, and our responsibility is to ensure that public finances are managed prudently and transparently,” she said.

“Resources that could otherwise finance critical development projects are instead being absorbed by the country’s significant debt obligations, underscoring the importance of staying the course on the current reform agenda.”

Prof. Opoku-Agyemang made the remarks during a working visit to the Ministry of Finance, part of a series of engagements with Ministries, Departments and Agencies aimed at strengthening coordination between the Presidency and institutions implementing the government’s Reset Agenda.

She said the visit allowed her to assess the Ministry’s progress, understand its challenges and identify the support needed to advance the government’s economic recovery programme.

Briefing on inherited fiscal pressures

Officials of the Ministry updated the Vice President on the difficult fiscal conditions inherited by government and measures being implemented to restore macroeconomic stability. The briefing covered progress in debt restructuring, including successful repayment of Eurobond obligations and other major commitments, as well as preparations to meet substantial repayment obligations in the coming years.

She was also briefed on efforts to restore fiscal discipline and reduce the deficit over the medium term to place the economy on a more sustainable path.

Key reforms highlighted

The Ministry outlined several reforms undertaken to strengthen public financial management, including:

• Amendments to the Public Financial Management Act
• Amendments to the Public Procurement Act
• Enactment of the Value for Money Act
• Improvements in domestic revenue mobilisation
• Restructuring of COCOBOD
• Uncapping of the NHIS Fund, GETFund, and the Road Maintenance Trust Fund

Officials also provided updates on budgetary allocations to flagship programmes such as the Big Push infrastructure initiative and the operationalisation of the Women’s Development Bank.

Prof. Opoku-Agyemang commended Finance Minister Dr. Cassiel Ato Forson, his deputy Thomas Nyarko Ampem, and the Ministry’s staff for their commitment to reforms aimed at restoring economic stability.

She stressed that government must continue to promote value addition, sound budgeting and prudent management of public resources to build a stronger, more resilient and prosperous economy.