By Emmanuella Erica Bruce
Finance Minister Dr Cassiel Ato Forson has ruled out additional government borrowing to finance the proposed New Economy Programme, saying the initiative will rely on increased domestic revenue and savings from fiscal consolidation.
The programme is expected to receive an annual allocation equivalent to 1.5 per cent of Ghana’s Gross Domestic Product (GDP) from 2027 to 2030, with total funding projected to reach at least US$13 billion over the four-year period.
Speaking during an engagement with students and members of the Kwame Nkrumah University of Science and Technology (KNUST), Dr Forson said the funding would be sourced through two fiscal measures.
These include allocating 0.5 per cent of GDP from government revenue and reducing the primary surplus target from 1.5 per cent to 0.5 per cent of GDP.
He maintained that the arrangement would create room for investment without undermining Ghana’s debt sustainability commitments, including the target of reducing public debt to 45 per cent of GDP by 2028.
The Minister said Ghana recorded a primary surplus of 2.5 per cent of GDP in 2025, with a further 1.5 per cent expected in 2026. He indicated that these surpluses would contribute to reducing public debt by approximately four percentage points of GDP.
From 2027, however, the government plans to slow the pace of debt reduction to 0.5 per cent of GDP annually to accommodate investment under the programme.
Dr Forson also clarified that the Ghana Gold Board (GoldBod) does not generate revenue for the government, explaining that the state relies mainly on direct taxes, indirect taxes and non-tax revenue.
