Finance Minister, Dr Cassiel Ato Forson, says Ghana has significantly reduced the proportion of national revenue used to service public debt, from more than 50 percent in the past to less than 20 percent currently.
According to the Minister, the high debt-service burden previously left the country with limited resources to finance critical sectors such as education, healthcare, roads and other essential infrastructure.
Dr Ato Forson said the significant reduction in debt servicing represented an important improvement in Ghana’s public finances and would create more fiscal space for government to invest in national development.
“In the past, Ghana spent over 50 percent of its national revenue on servicing debt.
This left less money for schools, hospitals, roads and other essential infrastructure,” he said.
“Today, I am proud to say that we have made significant progress. We now spend less than 20 per cent of our revenue on servicing debt,” he added.
He made this admission during the signing of a Memorandum of Understanding with Belgium government in Accra
The Finance Minister said the development reflected progress in efforts to strengthen the country’s fiscal position and restore sustainability to public finances.
He indicated that reducing the debt-service burden would allow a greater share of government revenue to be directed towards development priorities and the delivery of essential public services.
Dr Ato Forson said the government would continue to pursue measures aimed at maintaining fiscal discipline and ensuring that public resources were used to support economic growth and improve the livelihoods of Ghanaians.
