Finance Minister Dr Cassiel Ato Forson has defended the government’s spending decisions, insisting that available public resources must first be used to settle inherited debts and restore confidence in the economy.
He questioned critics who continue to demand increased government expenditure, warning that abandoning fiscal discipline could plunge Ghana back into the economic crisis it is seeking to overcome.
Speaking on Joy News’ PM Express on Thursday, November 12, after presenting the 2027 Budget to Parliament, Dr Forson rejected suggestions that the government was not spending enough.
“I’m spending, but you see, people don’t appreciate it,” he said.
He explained that the administration had inherited significant financial obligations from the previous government, leaving it with the responsibility of managing outstanding debts while pursuing its development agenda.
“You see, I have this house that I have inherited from President Akufo-Addo’s government, and a large economic management team. These are debts that we have inherited. Do you want me to crash the country again? Do? I can’t,” he stated.
The Finance Minister disclosed that government had so far paid GH¢41 billion to bondholders under the Domestic Debt Exchange Programme (DDEP), describing the payments as part of its inherited financial responsibilities.
According to him, settling outstanding obligations and restoring confidence in the financial market remain essential to preventing another economic downturn.
“These are not normal times. I need to take the country off crisis. I need to restore market confidence. I need to pay the debt that has fallen due,” he stressed.
Dr Forson maintained that government must prioritise its financial commitments before considering additional expenditure, arguing that spending decisions cannot be separated from the resources available.
“I have my obligations. One, pay your debt; enough of what will be left, you will use it for others,” he explained.
His comments come as the 2027 Budget projects total government expenditure of GH¢389.2 billion for the coming fiscal year.
Of this amount, GH¢100.4 billion has been allocated to capital expenditure, while GH¢61 billion is earmarked for interest payments on domestic and external debt.
The budget also provides GH¢104.1 billion for employee compensation and GH¢13.9 billion for the clearance of arrears.
As part of efforts to manage the country’s debt, Dr Forson announced plans to settle GH¢29 billion in Domestic Debt Exchange Programme principal falling due in February 2027 ahead of schedule through an early redemption offer to bondholders.
Government also intends to pay a US$590 million Eurobond obligation due in January 2027 by December 31, 2026.
The two repayments are expected to clear more than GH¢36 billion in debt obligations ahead of their respective maturity dates.
The Finance Minister said the government’s approach was aimed at protecting the economic gains made so far while ensuring that the country does not return to the financial difficulties that necessitated the debt restructuring.
He maintained that government must strike a balance between meeting its financial obligations and funding development priorities without taking on unsustainable expenditure.
