Debt servicing draining funds for development — Prof Opoku-Agyemang

Vice President Prof. Jane Naana Opoku-Agyemang has warned that Ghana’s substantial debt obligations continue to divert resources away from critical development projects, underscoring the need for prudent fiscal management and sustained economic reforms.

According to her, resources that could otherwise be invested in infrastructure and other priority sectors are instead being used to service the country’s debt, making it imperative for government to remain committed to its fiscal consolidation agenda.

“Every decision made by the Ministry ultimately affects the lives of ordinary Ghanaians, and our responsibility is to ensure that public finances are managed prudently and transparently,” she said.

“Resources that could otherwise finance critical development projects are instead being absorbed by the country’s significant debt obligations, underscoring the importance of staying the course on the current reform agenda.”

Prof. Opoku-Agyemang made the remarks during a working visit to the Ministry of Finance as part of a series of engagements with Ministries, Departments and Agencies aimed at strengthening coordination between the Presidency and public institutions implementing the government’s Reset Agenda.

She said the visit provided an opportunity to assess the Ministry’s progress, understand the challenges it faces and identify the support required to advance the government’s economic recovery programme.

The Vice President said officials of the Ministry briefed her on the difficult fiscal conditions inherited by the government and measures being implemented to restore macroeconomic stability.

The briefing covered progress in debt restructuring, including the successful repayment of Eurobond obligations and other major debt commitments, as well as preparations to meet substantial repayment obligations in the coming years.

She was also updated on efforts to restore fiscal discipline and reduce the fiscal deficit over the medium term to place the economy on a more sustainable path.

The Ministry further highlighted reforms undertaken to strengthen public financial management, including amendments to the Public Financial Management Act and the Public Procurement Act, the enactment of the Value for Money Act, improvements in domestic revenue mobilisation, the restructuring of COCOBOD, and the uncapping of the National Health Insurance Fund, GETFund and the Road Maintenance Trust Fund.

Officials also briefed the Vice President on budgetary allocations to flagship government programmes, including the Big Push infrastructure initiative and the operationalisation of the Women’s Development Bank.

Prof. Opoku-Agyemang commended the Minister for Finance, Dr. Cassiel Ato Forson, his deputy, Thomas Nyarko Ampem, management and staff of the Ministry for their commitment to implementing reforms aimed at restoring economic stability.

She stressed that government must continue to promote value addition, sound budgeting and prudent management of public resources to build a stronger, more resilient and prosperous economy.