Ato Forson defends spending choices, saying debt payments must come first

Ghana’s Finance Minister, Cassiel Ato Forson, has pushed back at criticism that the government should be spending more, arguing that settling inherited debts is a priority if the country is to avoid another economic crisis. Speaking on Joy News’ PM Express after presenting the 2027 Budget to Parliament, he said the government had to work within its available resources and meet financial commitments before taking on extra spending. Forson said the government had paid GH¢41 billion to holders of bonds under the Domestic Debt Exchange Programme. He described the payments as part of the financial burden inherited from the previous administration and said they were necessary to restore confidence in the economy and the market. “I’m spending, but you see, people don’t appreciate it,” he said, according to the report. Forson compared the situation to inheriting a house with substantial debts and questioned whether he should risk destabilising the country just to answer demands for greater expenditure. He said his immediate tasks were to move Ghana away from crisis, pay debts that had fallen due and rebuild market confidence. The minister also argued that government could not spend money it did not have. In his view, obligations such as debt repayments had to be met first, with the remaining funds used for other needs. He described the circumstances as unusual and said spending decisions had to reflect both the money available and the commitments the government was required to honour. The report says the Finance Ministry had disclosed that payments to DDEP bondholders since 2025 totalled GH¢41.36 billion, including a GH¢10.8 billion coupon payment in August 2026. The 2027 Budget projects total government expenditure of GH¢389.2 billion, with GH¢100.4 billion allocated to capital expenditure and GH¢61 billion set aside for interest payments.