Ghana has dramatically altered its fiscal posture as the share of national revenue devoted to debt servicing has plunged, Finance Minister Dr Cassiel Ato Forson has announced. The disclosure offers a rare glimmer of fiscal relief at a time when budgetary pressure remains acute.
The Finance Minister revealed that the state previously channelled more than half of its revenue into servicing public obligations, leaving critical sectors underfunded. That burden, he stated, has now been reduced to below a fifth of total revenue.
“In the past, Ghana spent over fifty percent of its national revenue on servicing debt. This left less money for schools, hospitals, roads and other essential infrastructure,” Dr Forson said in a Facebook publication. He continued, “Today, I am proud to say that we have made significant progress. We now spend less than twenty percent of our revenue on servicing debt.”
The development marks a pivotal turn in efforts to restore debt sustainability and rebuild market confidence following prolonged fiscal stress and restructuring engagements. Economists note that easing the debt service ratio expands fiscal headroom, allowing greater allocation to capital projects and social services without undermining consolidation.
Should the trajectory hold, government anticipates enhanced capacity to finance priority programmes while preserving discipline. Further details are expected in upcoming fiscal briefings as analysts scrutinize the longevity of the improvement.
Call or WhatsApp +233 20 2190 250 and share your story.
Author: Korkor Anumu
