Finance Minister Cassiel Ato Forson has asserted that the current Mahama-led administration is borrowing funds primarily to service maturing debts inherited from the previous New Patriotic Party (NPP) government under former President Nana Akufo-Addo.
In a sharp rebuttal to critics, Forson claimed the Mahama government’s net borrowing since taking office stands at GH₵7.1 billion, which he described as a “necessary buffer” to manage obligations accumulated by the outgoing administration.
“For the avoidance of doubt, actual debt accumulation under the Mahama government is virtually zero,” Forson stated during a press briefing in Accra. “Every cedi borrowed has been directed at preventing default on NPP-era debts. We are cleaning up a mess we did not create.” His remarks come amid mounting public scrutiny over Ghana’s debt sustainability, with the nation still navigating a $3 billion IMF bailout program initiated in 2023.
Forson pointed to recent fiscal metrics as evidence of progress, citing a dramatic drop in the 91-day Treasury Bill rate from 28.34% to 20.79% within 50 days of the new government’s tenure. “This decline is an emphatic vote of confidence from investors in our prudent debt management,” he argued, urging Ghanaians to dismiss opposition “propaganda” and support the administration’s recovery agenda.
The NPP, now in opposition, has yet to formally respond to the allegations. However, economists note that Ghana’s total public debt remains a pressing concern, exceeding 80% of GDP as of late 2024. Critics argue that while refinancing existing debt may stabilize short-term liquidity, it does little to address structural issues like revenue leaks, inefficient subsidies, and stagnant growth in key sectors.
Political analysts suggest Forson’s statements aim to preempt backlash ahead of the 2025 budget presentation, which is expected to outline austerity measures alongside promised tax cuts. The Finance Minister’s insistence on “zero new debt” has sparked debate, with some questioning how the GH₵7.1 billion figure aligns with broader deficit targets. “Refinancing old debt with new borrowing is still borrowing,” countered Franklin Cudjoe, founder of IMANI Africa. “The real test is whether these steps translate to tangible relief for households.”
As the Mahama government prepares to table its budget on March 11, Ghanaians remain divided. Supporters view the administration’s approach as a responsible cleanup job, while skeptics demand clearer strategies to curb reliance on loans and stimulate organic growth. For now, the debt debate underscores a familiar cycle in Ghanaian politics: each government blaming its predecessor for economic woes, while citizens await results beyond the rhetoric.
