Prof. Zubairu has raised concerns over the funding arrangements for the government’s proposed New Economy Programme, prompting the Minister of Finance, Dr Cassiel Ato Forson, to assure that the initiative will not be financed through additional borrowing.
Dr Ato Forson gave the assurance during an interactive engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST), where he explained that the programme would be funded through domestic revenue and savings from fiscal consolidation.
He said the government plans to allocate 1.5 per cent of Gross Domestic Product (GDP) annually to the programme between 2027 and 2030 without adding to the country’s public debt.
According to the Finance Minister, the funding will come from two main sources: an allocation of 0.5 per cent of GDP from government revenue and a reduction in the primary surplus target from 1.5 per cent to 0.5 per cent of GDP.
He explained that the two measures would create the necessary fiscal space for investment in the programme, with the total allocation potentially reaching at least US$13 billion over the four-year period.
Dr Ato Forson also clarified that the Ghana Gold Board (GoldBod) does not generate revenue for the Ministry of Finance or the government, noting that the state’s finances are primarily supported by direct taxes, indirect taxes and non-tax revenue.
He further reaffirmed the government’s commitment to its debt sustainability targets, including reducing public debt to 45 per cent of GDP by 2028.
Citing improvements in the country’s primary balance, the Minister said Ghana recorded a primary surplus of 2.5 per cent of GDP in 2025, while a further surplus of 1.5 per cent is projected for 2026.
He explained that the two surpluses would collectively contribute to a debt reduction equivalent to approximately 4 per cent of GDP.
However, from 2027, the government intends to moderate the pace of debt reduction to 0.5 per cent of GDP annually, thereby creating additional fiscal space to support investments under the New Economy Programme.
Dr Ato Forson maintained that the funding arrangement would enable the government to pursue its economic transformation agenda while keeping public debt on a declining trajectory.