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The central government owes suppliers and contractors an astounding GHS67.5 billion, according to Finance Minister Dr. Cassiel Ato Forson.
Dr. Forson emphasized the substantial arrears accrued by the government, which amount to 5.2% of Ghana’s GDP as of December 2024, when he presented the government’s 2025 Budget Statement and Economic Policy before Parliament on Tuesday, March 11.
“At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion,” he said.
Dr. Forson claimed that when he took office on January 23, 2025, he was flooded with demands for money from a large number of suppliers and contractors.
He added that on January 28, 2025, the Ministry of Finance (MoF) formally sought information on all arrears and outstanding claims from the Ministries, Departments, and Agencies (MDAs) in order to determine the overall amount of arrears and pending payments for all MDAs.
“Subsequently, Mr Speaker, the MoF held a special hearing with the MDAs to validate the arrears submitted for payment. The response from the MDAs revealed that a staggering amount of GHS67.5 billion is owed to government contractors and suppliers,” Dr. Forson clarified.
GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department and GHS49.2 billion in unpaid interim payment invoices from the MDAs make up the breakdown of the arrears.
Dr. Forson added that the GHS67.5 billion does not include the GHS68 billion that the Electricity Company of Ghana (ECG) owes contractors, the GHS32 billion that the COCOBOD owes contractors, the GHS5.75 billion that the Ghana Road Fund owes various contractors, or the $1.73 billion that is owed to Independent Power Producers (IPPs).
In order to solve its negative equity issue, the Bank of Ghana (BoG) is also requesting a rescue of GHS53 billion.
Source: Ghanatodayonline.com
