We saved more; now we must tackle jobs – Ato Forson defends 2027 shift

Finance Minister Dr Cassiel Ato Forson defended the government’s shift to job creation in 2027, arguing that stronger-than-required fiscal savings have created room to tackle youth unemployment. Speaking in an interview on Thursday after presenting the 2027 Budget to Parliament, he said the government exceeded its 2025 primary surplus target to restore confidence in economic management.

“In 2025, the anchor, as approved by Parliament, was for me to do 1.5% of GDP primary surplus. I did 2.5% of GDP,” he said. Dr Forson described the additional percentage point as a deliberate sacrifice to establish policy credibility. “So we saved 1% of GDP. Taking back 1% in 2027 would not harm the economy.” His comments followed a question about whether reducing the fiscal buffer would require greater discipline over the next few years.

The minister maintained that the government’s earlier restraint had delivered the stability needed to pursue its next priority: changing the economy to generate employment. “I call it the shock therapy, to provide the necessary shock to the economy to stabilise something that ideally would have taken 10 years.” He argued that the measures introduced had helped achieve that stabilisation within two years.

The task now, he said, was to respond to the growing number of young people without work or access to education and training. According to Dr Forson, 1.34 million young Ghanaians are neither in employment, education nor training, a category known as NEET. “This is a bomb waiting to explode.” He warned that the number could rise to about 1.7 million over the next four years without action.

He also cautioned that leaving the problem unresolved would carry serious long-term consequences. Dr Forson said the government’s New Economy approach would target structural changes rather than rely on stability alone. “Our approach is to use this new economy to change the structure of the economy and invest in eight areas. This is where the jobs are.” The minister presented the proposed shift as a response to both the gains from fiscal restraint and the urgency of unemployment.

Having exceeded its earlier savings target, he argued, the government must now focus on investments that create jobs.