Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has revealed a bold new direction in government spending, with a clear focus on initiatives that directly improve the well-being of citizens. As part of this shift, the government is freeing up GHS 3.8 billion by adjusting the tax refund ceiling—funds that will now be redirected into vital social programs.
“We are investing in areas that directly impact the lives of citizens,” Dr. Forson stated. “This money will support key initiatives such as the provision of free sanitary pads for schoolgirls, the school feeding program, capitation grants, and the LEAP program for vulnerable households.”
These targeted interventions, he emphasized, will significantly strengthen education, healthcare, and social protection systems—improving outcomes for millions across the country.
Increased Spending on Essential Services
Dr. Forson further assured Ghanaians that government expenditure on schools, hospitals, and road infrastructure will see a major boost. This has been made possible by lifting funding caps on these critical sectors.
“We are ensuring that flagship programs like Free Secondary Education and Free Tertiary Education for persons with disabilities are adequately resourced,” he said. “Moreover, we are intensifying investments in health and infrastructure projects that uplift communities nationwide.”
New Fiscal Discipline to Safeguard the Economy
To prevent a repeat of past fiscal mismanagement, the government is introducing a robust framework of fiscal rules aimed at promoting sustainable public finance.
Among the key reforms:
The establishment of an Independent Fiscal Council to monitor government spending and enforce transparency.
A commitment to maintain a primary surplus of 1.5% of GDP annually until 2034 to preserve economic stability.
A long-term goal to cap the national debt at 45% of GDP by 2034, ensuring Ghana avoids unsustainable debt accumulation.
“These reforms are about restoring trust and responsibility in how we manage public funds,” Dr. Forson said. “We are breaking from a past of excessive spending and charting a path toward stability and accountability.”
Ending Wasteful Projects Through Stronger Procurement Laws
To further promote efficiency and tackle corruption in public contracting, the Minister announced that commencement certificates will now be mandatory before awarding any government contract.
“This reform ensures that no project will begin without secured funding—eliminating the trend of abandoned or stalled government initiatives,” he explained.
Oil Revenue to Drive Development Under ‘The Big Push’
In a transformative move, the government will now channel all of Ghana’s oil revenue into large-scale infrastructure development through a new initiative dubbed “The Big Push.”
“This is about using our natural wealth wisely—to build roads, bridges, and other lasting infrastructure that supports economic growth and creates jobs,” Dr. Forson stressed.
Story by:Mercy Addai Turkson #ahotoronline.com
