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Cassiel Ato Forson, Ghana’s Finance Minister, has stated that the new government’s economic problems are still grave.
On Tuesday, March 11, Forson gave Parliament the government’s 2025 Budget Statement and Economic Policy. He emphasized the severe financial circumstances in the nation and the economic difficulties the new administration inherited.
“We inherited an economy in deep crisis. Even with the sacrifices of domestic bondholders, external creditors, and taxpayers, the economy remains in distress,” he added.
Forson claims that important economic indications for 2024 have mostly gone unnoticed. From 23.2% in 2023 to 23.8% in 2024, inflation exceeded the IMF’s primary target of 18% as well as the budget aim of 15%. Discussions under the IMF’s Monetary Policy Consultation Clause have been sparked by this deviation.
According to Forson, the central government of Ghana owes 67.5 billion cedis (5.2% of GDP) in outstanding arrears as of December 2024, of which 21 billion cedis came from the road sector alone.
After taking office on January 23, 2025, the Ministry of Finance was inundated with requests for payments from suppliers and contractors.
The government discovered 67.5 billion cedis in arrears owed to different vendors and contractors after auditing unpaid claims. In addition, the Ghana Road Fund had 5.75 billion cedis in arrears, and the Electricity Company of Ghana owed contractors 68 billion cedis.
The minister also disclosed that in order to solve its negative equity issue, the Bank of Ghana is requesting a GHC 53 billion bailout. He reassured Parliament, “We have commissioned an audit before any payments are made to ensure value for money.”
Source: Ghanatodayonline.com
