The government is targeting at least US$13 billion in investment under its proposed New Economy Programme between 2027 and 2030, with Finance Minister Dr Cassiel Ato Forson insisting that the initiative will not be financed through additional borrowing.
Dr Ato Forson said the government intends to mobilise the resources through domestic revenue and savings generated from its fiscal consolidation measures, while maintaining its commitment to reducing public debt.
He disclosed this during an interactive engagement with students and members of the university community at the Kwame Nkrumah University of Science and Technology (KNUST), where he addressed concerns about the sustainability and funding arrangements for the programme.
According to the Finance Minister, the government plans to allocate 1.5 per cent of Gross Domestic Product (GDP) annually to the initiative from 2027 to 2030 without contracting new loans.
He explained that the funding structure would rely on two main sources: an allocation equivalent to 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.
The adjustment, he said, would create additional fiscal space for strategic investments without placing further pressure on the country’s public debt.
Dr Ato Forson also clarified that the Ghana Gold Board (GoldBod) does not generate revenue for the Ministry of Finance or the government, explaining that the state’s finances are primarily supported by direct taxes, indirect taxes and non-tax revenue.
On debt sustainability, he reaffirmed the government’s target of reducing public debt to 45 per cent of GDP by 2028.
He cited a primary surplus of 2.5 per cent of GDP recorded in 2025 and a projected surplus of 1.5 per cent for 2026 as evidence of progress towards achieving the debt reduction target.
According to him, the two surpluses are expected to contribute to a cumulative debt reduction equivalent to approximately four per cent of GDP.
However, from 2027, the government plans to moderate the pace of debt reduction to 0.5 per cent of GDP annually to create room for investment in the New Economy Programme.
The Finance Minister maintained that the approach would allow the government to pursue its economic transformation ambitions while keeping public debt on a declining trajectory.
