GH¢61bn interest payments threaten funding for development – Minority

The Minority party in Ghana has expressed concern over the projected GH¢61 billion in interest payments due in 2027, warning that the cost of servicing public debt is diminishing resources for critical sectors such as infrastructure and agriculture. In a review of the 2027 budget, ranking member of the Finance Committee, Dr. Mohammed Amin Adam, pointed out that the amount designated for interest payments surpasses the total funding allocated to several key growth sectors.

These sectors include agriculture, energy, the Big Push infrastructure programme, youth development, industry, and tourism, which together receive about GH¢37.87 billion. The Minority argues that the interest payments will exceed allocations for education and health, prompting questions about the government’s spending priorities.

Dr. Adam questioned the source of future growth, emphasizing that without improved fiscal discipline, strategic borrowing, effective cash management, and a shift towards productive investments, Ghana risks re-entering a cycle where a larger portion of public revenue is allocated to debt servicing rather than investments that could boost the economy and generate employment.

The Minority party is urging for stricter expenditure controls and a pivot towards investments that generate value to ensure a sustainable economic recovery.