GH¢61bn interest payments threaten funding for development – Minority

The Minority has raised concerns about Ghana’s projected GH¢61 billion interest payments in 2027, warning that the cost of servicing public debt is limiting the resources available for infrastructure, agriculture and other productive sectors.

In its assessment of the 2027 Budget, Ranking Member of Parliament’s Finance Committee, Dr Mohammed Amin Adam, said the amount allocated to interest payments was higher than the combined funding for several key sectors expected to drive economic growth.

He noted that allocations to agriculture, energy, the Big Push infrastructure programme, youth development, industry and tourism amounted to approximately GH¢37.87 billion, significantly below the projected interest bill.

The Minority also argued that interest payments would exceed the allocations to both education and health, raising questions about the government's spending priorities.

“Where exactly is the growth going to come from?” Dr Amin Adam asked.

He said Ghana risked returning to a cycle in which a growing proportion of public revenue was devoted to debt servicing rather than investments capable of expanding the economy and creating employment.

“Without greater fiscal discipline, prudent borrowing, effective cash and liquidity management, and a deliberate reorientation of public expenditure towards productive investment, we risk perpetuating a cycle in which an increasing share of public resources goes into servicing debt rather than financing economic growth,” he said.

The Minority is therefore calling for stronger expenditure controls and a shift towards productive investments to ensure that the country's economic recovery is sustainable.