The Minister of Finance, Dr Cassiel Ato Forson, has announced that state-owned enterprises (SOEs) will for the first time be brought under the government's commitment authorisation regime, a move aimed at preventing them from accumulating debts that ultimately become a burden on taxpayers.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, 2026, the Minister said the new measure forms part of broader fiscal reforms to strengthen public financial management and curb the unchecked borrowing that has contributed to Ghana's rising public debt.
"For the first time, state-owned enterprises are now bound by the commitment authorisation regime, restraining them from spending beyond their means," Dr Forson told Parliament.
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According to him, the liabilities of state-owned enterprises have added the equivalent of about 3% of Ghana's Gross Domestic Product (GDP) to the country's public debt every year over the past decade because many of the entities failed to honour their contractual obligations, forcing government to assume those debts.
"Over the last 10 years, liabilities of state-owned enterprises have added the equivalent of about 3% of GDP to Ghana's public debt every single year. This occurred because state-owned enterprises failed to honour their contractual obligations, compelling government to assume and settle those liabilities," he said.
The Finance Minister noted that the growing debt burden meant resources that could have been invested in roads, hospitals and other critical infrastructure were instead used to settle the debts of state-owned enterprises.
"This is part of the reason why Ghana's debt grew unsustainably without the bridges, roads or hospitals to show for," he stated.
Dr Forson argued that efforts to enforce fiscal discipline across ministries and Parliament would have little impact if state-owned enterprises continued to accumulate liabilities outside government controls.
"What is the point of ensuring that ministries and even Parliament live within their means if state-owned enterprises are permitted to run up liabilities that taxpayers are ultimately forced to pay?" he asked.
He explained that Ghana's debt challenges were not driven solely by fiscal deficits but also by the unchecked financial obligations accumulated by state-owned enterprises, making it necessary to include them under the commitment authorisation framework.
"It is important to recognise that Ghana's debt challenge was driven not only by fiscal deficits but also by the unchecked accumulation of liabilities by state-owned enterprises. This is precisely why the commitment authorisation regime would have been meaningless had state-owned enterprises been excluded from its coverage," he added.
The review, required under Ghana's public financial management laws, will provide an update on the economy, government revenue and expenditure, debt servicing, and the fiscal outlook for the remainder of 2026.
ANAS/SA
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