Debt servicing taking more money than key growth sectors – Minority
The Minority in Parliament says Ghana's rising interest payment obligations are undermining the government's ambition to accelerate economic growth and create jobs.
The Ranking Member of Parliament’s Finance Committee, Dr Mohammed Amin Adam, said the GH¢61 billion allocated for interest payments in the 2027 Budget was significantly higher than the combined funding for several sectors expected to stimulate economic activity.
He said allocations for agriculture, energy, the Big Push, youth development, industry and tourism amounted to GH¢37.874 billion, leaving interest payments GH¢23.126 billion higher.
The Minority also noted that the amount set aside for debt servicing exceeded the entire allocations for education and health, which received GH¢48 billion and GH¢40.3 billion respectively.
Dr Amin Adam argued that the spending pattern raised concerns about the government's ability to expand productive capacity when a substantial portion of public resources was being used to service debt.
He also questioned whether the fiscal relief expected from Ghana's debt restructuring had been effectively managed, pointing to domestic interest costs of about GH¢51 billion.
According to him, subsequent borrowing and its associated costs appeared to have eroded some of the fiscal space created through the restructuring exercise.
Addressing the media in Parliament on Friday, November 13, following the presentation of the 2027 Budget by Finance Minister Dr Cassiel Ato Forson, Dr Amin Adam challenged the government's spending priorities.
“Where exactly is the growth going to come from?” he asked.
He called for greater fiscal discipline, prudent borrowing and stronger cash management, warning that without a shift towards productive investment, Ghana could remain trapped in a cycle of rising debt-service costs and limited resources for economic expansion.
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