Ghana’s Finance Minister, Dr Cassiel Ato Forson, has announced a sharp decline in the share of national revenue allocated to debt servicing, saying the figure has fallen below 20 per cent from a previous level exceeding 50 per cent.
In a social media statement, Dr Forson described the shift as a major milestone in the country’s efforts to restore fiscal stability. He noted that the earlier burden had severely limited the resources available for essential public investment, leaving insufficient funding for schools, hospitals, roads and other critical infrastructure.
The minister said the reduction has created meaningful fiscal space, allowing the government to redirect internally generated revenue toward development priorities. He framed the progress as a direct outcome of ongoing debt restructuring and fiscal consolidation measures.
Analysts have long identified debt service costs as a primary constraint on Ghana’s budget flexibility. The International Monetary Fund and other partners have emphasised the importance of bringing the debt-to-revenue ratio to sustainable levels as a condition for programme support.
While the lower debt-service ratio improves the government’s capacity to fund social and economic programmes, the actual fiscal room will depend on revenue performance, expenditure discipline and the management of other contingent liabilities. The administration has signalled its intention to maintain strict budgetary controls and continue negotiations with creditors to lock in the gains.
The development marks a significant turn in Ghana’s recent economic trajectory, where debt distress triggered a domestic restructuring exercise and an external bailout. Sustaining the improved ratio will require consistent revenue mobilisation and prudent borrowing practices in the years ahead.