Gov’t to tie future borrowing to measurable economic benefits – Ato Forson

Finance Minister Dr Cassiel Ato Forson has announced that the government will not undertake new borrowing unless there is clear evidence that the funds will generate tangible economic benefits for Ghana.

According to Dr Ato Forson, future borrowing decisions will be guided by the economic value expected from the funds, signalling a stronger emphasis on fiscal discipline and ensuring that borrowed resources contribute meaningfully to the country’s development.

He said the government would no longer approach borrowing simply as a means of financing expenditure, but would require a clear economic justification before contracting new debt.

The position forms part of efforts to strengthen the management of Ghana’s public finances and ensure that borrowed funds are channelled into activities capable of supporting economic growth and improving the country’s productive capacity.

Dr Ato Forson’s remarks also suggest a more cautious approach to public debt, as the government seeks to ensure that the benefits derived from borrowing are sufficient to justify the financial obligations created for the state.

Under the approach, projects and programmes requiring borrowed funds would be expected to demonstrate their potential economic returns before such financing is considered.

The Finance Minister’s position comes amid continued efforts by the government to restore confidence in Ghana’s fiscal management and put public finances on a more sustainable footing.

By making economic benefits a key consideration in future borrowing decisions, the government is seeking to ensure that public debt contributes to growth rather than creating additional financial pressures without corresponding returns.

Dr Ato Forson therefore stressed the need for borrowing to be linked to clear economic outcomes, with the ultimate objective of protecting Ghana’s fiscal position while ensuring that necessary investments can still be financed.