Despite painting an impressive economic image, Dr Ato Baah Forson, the Minister for Finance is urging caution, saying the country ‘is not out of the woods yet’.
According to him, more remains to be done to bring the economy back on full track indicating that it will be premature to start celebrating about the gains made at the moment.
As a manager of the economy, the minister said there is hope in sight and was hopeful that they will be about to find their way to the right path.
“We are not out of the woods yet. It would be premature to make that pronouncement, but the good news is that, today, hope is in sight.
And we are determined to navigate the country out of the terrible storm we inherited from former President Akufo-Addo and Alhaji Bawumia”, he said while reading the 2025 Mid-Year Fiscal Policy Review to Parliament on Wednesday, July 24,
The Ajumako Enyan Essiam constituency Member of Parliament (MP) while sounding modest pleaded with Ghanaians to support government on it quest to bring total stability to the economy for the good of all.
“We need the support of the people of Ghana to weather this storm. We see you, we hear you, and we are working for you”.
In the face of inheriting a very a weak economy, the John Mahama led National Democratic Congress (NDC) says it has been able to chalk some tangible successes.
The administration which is barely 7 month has been able to stabilize the economy generally with many of the microeconomic indicators showing positive signs.
The national currency has been stabilized now hovering around a little over GHS10. Another important indicator, inflation is now 13.7 from 23.5 in January 2025.
Government has been able to reduce external debt, achieved strong nominal GDP growth, increased reserve accumulation and normalized relationship with external creditors.
The favourbale environment has led to the government settling new and arrears of statutory payments. He also rebuffed claims by critics especially the minority that it is recording some stability because it is not spending.
According to the minister, the government is spending contrary to the position of the New Patriotic Party (NPP) except that spending at important areas.
“Contrary to the perception that we are not spending, we are indeed spending—and spending at the right places. We are making the right investments,” he stressed.
To show receipts of some of the payment made so far Dr Forson enumerated the spending made so far between January and June 2025.
Highlight of the figures was a US$700 million Eurobond payment, which he cited as evidence of Ghana’s re-engagement with its global financial obligations.
“We have paid GH¢10 billion to domestic bondholders,” the Minister said, emphasizing the government’s commitment to restoring confidence in local debt markets.
He went further to highlight what he called “key investments in essential services”:
- GH¢2.7 billion to SSNIT to safeguard pensions
- GH¢9.1 billion to the energy sector to ensure a stable electricity supply
- GH¢4.6 billion to the Ghana Education Trust Fund (GETFund)
- GH¢5 billion to clear outstanding arrears
- GH¢2.9 billion to the District Assemblies Common Fund (DACF)
He also mentioned payments made in the social protection, education, health among others.
“We’ve paid GH¢1 billion to sustain free secondary education, GH¢4.6 billion to the National Health Insurance Scheme, and another GH¢1.4 billion to clear NHIS claims,” he announced.
Additionally, some GH¢252 million has been spent on vaccines and essential medicines, GH¢72.8 million on the Capitation Grant, and GH¢895 million to keep the School Feeding Programme running.
“We are not starving the vulnerable either,” he said, pointing to GH¢477 million paid to LEAP beneficiaries, GH¢300 million to the No Fee Stress Policy, GH¢122.8 million for BECE registration, and a combined GH¢654 million to support teacher and nursing trainees.
The minister also touched on other initiates started by government and funds have been expended on.
Chief among them was the GH¢25 million paid in Assembly Members’ allowances, an initiative by the government, GH¢21 million to the National Apprenticeship Programme, and GH¢34.5 million to support the Adwumawura Programme, a jobs and enterprise initiative, all lunched few months ago.
He also revealed that GH¢2 billion had been paid to ensure government Ministries, Departments and Agencies continue to function effectively, and another GH¢2 billion had been used to rescue the struggling National Investment Bank (NIB).
“This is not random spending. These are deliberate, targeted interventions to protect the vulnerable, invest in human capital, and maintain economic stability,” Dr. Forson insisted.
Summing it all up, the Finance Minister said non-interest expenditures amounted to GH¢84.2 billion, while total payments from the Consolidated Fund in the first half of 2025 stood at a staggering GH¢114.5 billion.
“We are not asleep at the wheel. We are working—with focus, responsibility, and urgency—to reset this economy for the Ghana we want,” he concluded, echoing the theme of the mid-year review.
By Gifty Boateng