Phalonzy🖊️
Ghana has chalked a monumental and unprecedented fiscal milestone in its debt sustainability trajectory, as the proportion of national revenue expended on public debt servicing has witnessed a drastic and remarkable decline.
According to the Minister for Finance, Dr. Cassiel Ato Forson, the country previously expended an alarming and crippling quantum of more than 50% of its total national revenue on debt servicing, a situation which left woefully limited resources for critical and essential sectors of the economy.
However, the Finance Minister has announced that the situation has now undergone a significant and transformative improvement, with Ghana presently spending less than 20% of its revenue on servicing its debt.
Disclosing this in a Facebook post on Saturday, August 22, Dr. Ato Forson emphasized that the reduction will create expanded fiscal space for Government to channel resources into essential infrastructure and indispensable public services.
“In the past, Ghana spent over 50 percent of its national revenue on servicing debt. This left less money for schools, hospitals, roads and other essential infrastructure,” he stated.
“Today, I am proud to say that we have made significant progress. We now spend less than 20 percent of our revenue on servicing debt!” he proudly declared.
The Finance Minister’s revelatory claim comes at a time when Government continues to highlight remarkable improvements in Ghana’s fiscal position and its relentless and unflinching efforts to restore comprehensive debt sustainability.
The drastic reduction in the debt-service burden is anticipated to provide Government with greater latitude and financial leverage to finance priority developmental programmes while maintaining uncompromising fiscal discipline and prudence.