The Minister of Finance, Dr Cassiel Ato Forson, has announced that GHS 3.8 billion is being freed up by adjusting the tax refund ceiling, allowing these funds to be redirected to critical social programs.
He assured that the government is investing in priority areas that touch the lives of the people.
In a statement on April 7, he said, “We are investing in areas that directly impact the lives of citizens. This money will support free sanitary pads for schoolgirls, school feeding programs, the capitation grant, and the LEAP program for vulnerable households.”
These interventions, he noted, will improve education, health, and social welfare for millions of Ghanaians.
The Minister assured Ghanaians that government spending on hospitals, schools, and road projects will be increased, thanks to reforms that remove caps on funds allocated to these sectors.
“We are making sure that free secondary education and free tertiary education for Persons with Disabilities are properly funded. Additionally, we are prioritizing health and infrastructure projects that benefit communities nationwide,” he said.
New Fiscal Rules to Prevent Reckless Spending
The government is introducing tougher financial rules to control debt and prevent wasteful spending.
Key measures include:
- An Independent Fiscal Council to monitor government spending and enforce transparency.
- A debt cap of 45% of GDP by 2034 to ensure Ghana does not accumulate unsustainable debt.
- A primary surplus of 1.5% of GDP annually until 2034 to maintain economic stability.
“These reforms will prevent the mistakes of the past where government spending was excessive and unsustainable. We are committed to responsible financial management,” the Minister stated.
Stronger Public Procurement Laws to End Wasteful Projects
To curb corruption and ensure efficient use of public funds, commencement certificates will now be required before awarding any government contract.
“This will prevent projects from being awarded without proper funding, ensuring that every project started is completed,” he explained.
Oil Revenues to Fund Infrastructure Under ‘The Big Push’
All of Ghana’s oil revenue will now be channeled into major infrastructure projects, including roads and bridges, under a new policy called “The Big Push.”
“We are using our natural resources to build lasting infrastructure that supports economic growth and job creation,” the Minister emphasized.
