The Minister for Finance, Dr Cassiel Ato Forson, says Ghana now spends less than 20 per cent of its revenue on servicing debt, down from about 50 per cent previously.
He said the high debt-service burden in the past left the country with fewer resources to finance schools, hospitals, roads and other critical infrastructure.
“At its peak, we were spending about 50 per cent of our revenue on debt servicing. This meant less money for schools, hospitals, roads and other infrastructure. That was unsustainable,” Dr Forson said.
“Today, I am proud to say that we have made considerable progress. We are now spending less than 20 per cent of our revenue on servicing debt.”
According to the Finance Minister, the reduction in debt-servicing costs has created more fiscal space for the government to invest in public infrastructure and social services aimed at improving the lives of Ghanaians.
Dr Forson said the government was also implementing measures to prevent the country from returning to an unsustainable debt situation.
“We are ensuring the fiscal rules we have instituted are enshrined in law, so that no matter which government is in office, these rules will be respected,” he stated.
The Finance Minister made the remarks at the signing of an agreement between the governments of Ghana and Belgium to restructure debt owed to Belgium’s export credit agency.
