Finance Minister Dr Cassiel Ato Forson has defended the government’s expenditure decisions, arguing that a significant portion of public resources is being channelled towards settling inherited debts and restoring economic stability rather than financing additional spending.
He said the government could not disregard its financial obligations or risk plunging the country into another economic crisis simply to meet demands for increased expenditure.
Dr Forson disclosed that government had so far paid GH¢41 billion to bondholders under the Domestic Debt Exchange Programme (DDEP), describing the payments as part of the financial obligations inherited from the previous administration.
Speaking on Joy News’ PM Express on Thursday, November 12, following the presentation of the 2027 Budget to Parliament, the Finance Minister dismissed criticism that government was not spending enough, insisting that available resources were being directed towards pressing financial commitments.
“I’m spending, but you see, people don’t appreciate it,” he said.
He explained that the administration had inherited substantial debt obligations alongside a difficult economic situation that required careful management to prevent a return to financial instability.
“I have this house that I have inherited from President Akufo-Addo’s government, and a large economic management team. These are debts that we have inherited. Do you want me to crash the country again? Do you? I can’t,” he stated.
The Finance Minister said his immediate priority was to move the country out of the economic crisis, restore confidence in the financial markets and settle debts that had fallen due.
“These are not normal times. I need to take the country off crisis. I need to restore market confidence. I need to pay the debt that has fallen due,” he said.
Dr Forson maintained that government expenditure must be guided by available resources and existing financial commitments, stressing that debt repayment had to take precedence before additional spending could be considered.
“I have my obligations. One, pay your debt; enough of what will be left, you will use it for others,” he added.
He further argued that responsible financial management required government to meet its outstanding obligations rather than commit resources it did not have.
The GH¢41 billion figure cited by the minister is consistent with an August 2026 disclosure by the Finance Ministry, which put total payments to DDEP bondholders since 2025 at GH¢41.36 billion, following a GH¢10.8 billion coupon payment on August 18, 2026.
Debt repayments and development spending
The minister’s comments come as the 2027 Budget projects total government expenditure of GH¢389.2 billion for the coming fiscal year.
Of this amount, GH¢100.4 billion has been allocated to capital expenditure, while GH¢61 billion is earmarked for interest payments on domestic and external debt.
The budget also provides GH¢104.1 billion for employee compensation and GH¢13.9 billion for the clearance of arrears.
As part of the government’s debt management strategy, Dr Forson announced plans to settle GH¢29 billion in DDEP principal falling due in February 2027 ahead of schedule through an early redemption offer to bondholders.
Government also intends to settle a US$590 million Eurobond obligation due in January 2027 by December 31, 2026.
The two repayments are expected to clear more than GH¢36 billion in debt obligations ahead of their respective maturity dates.
Dr Forson said the government’s approach was aimed at preventing a recurrence of the financial difficulties that necessitated the domestic debt restructuring.
He maintained that the administration must strike a balance between pursuing its development agenda, meeting inherited financial obligations and safeguarding the economic stability achieved so far.
