Finance Minister Dr Cassiel Ato Forson has defended the government’s planned shift towards job creation in 2027, arguing that savings made through stronger-than-targeted fiscal discipline have created room for increased investment in employment opportunities.
Speaking in an interview on Thursday after presenting the 2027 Budget Statement and Economic Policy to Parliament, Dr Forson said the government exceeded its 2025 primary surplus target as part of efforts to restore confidence in the management of the economy.
“In 2025, the anchor, as approved by Parliament, was for me to do 1.5% of GDP primary surplus. I did 2.5% of GDP,” he said.
He described the additional one percentage point achieved as a deliberate sacrifice aimed at establishing policy credibility and strengthening economic stability.
“So we saved 1% of GDP. Taking back 1% in 2027 would not harm the economy,” he added.
His comments followed a question about whether reducing the fiscal buffer would require greater discipline in the coming years.
Dr Forson maintained that the government’s earlier spending restraint had helped create the stability needed to pursue its next priority of restructuring the economy to generate employment.
He described the measures introduced as “shock therapy”, saying they were intended to stabilise the economy within a shorter period than would ordinarily have been required.
“I call it the shock therapy, to provide the necessary shock to the economy to stabilise something that ideally would have taken 10 years,” he said.
According to the minister, the measures had helped achieve the desired stabilisation within two years.
He said the government must now address youth unemployment, particularly the growing number of young people who are neither employed nor engaged in education or training.
Dr Forson disclosed that approximately 1.34 million young Ghanaians fall within this category, commonly referred to as NEET.
“This is a bomb waiting to explode,” he warned.
He further cautioned that the figure could increase to about 1.7 million over the next four years if urgent measures were not taken, adding that failure to address the situation could have serious long-term consequences.
The Finance Minister said the government’s New Economy agenda would focus on structural transformation and investment in eight key areas identified as potential sources of employment.
“Our approach is to use this new economy to change the structure of the economy and invest in eight areas. This is where the jobs are,” he stated.
Dr Forson argued that having achieved stronger-than-targeted fiscal savings, the government must now channel resources towards investments that create jobs and improve the livelihoods of Ghanaians.
