Debt burden diverting development funds – Vice President

Vice President, Jane Naana Opoku-Agyemang has warned that Ghana's heavy debt obligations are pulling resources away from critical development projects, stressing the need for prudent fiscal management and continued economic reforms.

The Vice President made these remarks during a working visit to the Ministry of Finance, part of a series of engagements with Ministries, Departments and Agencies aimed at strengthening coordination between the Presidency and public institutions implementing government's Reset Agenda as cited by myjoyonline.com

She said funds that could otherwise go into infrastructure and other priority sectors are instead being swallowed up by debt servicing which makes it essential for government to stay committed to its fiscal consolidation agenda.

“Resources that could otherwise finance critical development projects are instead being absorbed by the country's significant debt obligations, underscoring the importance of staying the course on the current reform agenda," She stated.

She said the visit gave her the chance to assess the Ministry's progress, understand the challenges it is struggling with, and identify what support is needed to push forward the government's economic recovery programme.

Officials at the Ministry briefed her on the difficult fiscal conditions the government inherited and the measures being rolled out to restore macroeconomic stability.

The briefing touched on progress made in debt restructuring, including the successful repayment of Eurobond obligations and other major debt commitments, as well as preparations underway to meet substantial repayments due in the coming years.

She was also updated on efforts to restore fiscal discipline and bring down the fiscal deficit over the medium term, with the aim of putting the economy on a more sustainable footing.

The Ministry further outlined reforms undertaken to strengthen public financial management.

These include amendments to the Public Financial Management Act and the Public Procurement Act, the enactment of the Value for Money Act, improvements in domestic revenue mobilisation, the restructuring of COCOBOD, and the uncapping of the National Health Insurance Fund, GETFund and the Road Maintenance Trust Fund.

Officials also briefed the Vice President on budgetary allocations to flagship government programmes, including the Big Push infrastructure initiative and the operationalisation of the Women's Development Bank.

She commended Finance Minister, Cassiel Ato Forson, his deputy Thomas Nyarko Ampem, and the management and staff of the Ministry for their commitment to implementing reforms aimed at restoring economic stability.

She stressed that government must keep promoting value addition, sound budgeting and prudent management of public resources to build a stronger, more resilient and prosperous economy.

DR