Finance Minister Dr. Cassiel Ato Forson has called for prudent management of Ghana’s fiscal space, warning that the country must avoid repeating past mistakes of spreading limited resources across competing demands without building long-term productive capacity.
He said the improvement in the country’s economic position presented an opportunity to direct public resources towards investments that would generate jobs, replace imports and expand exports.
Presenting the 2027 Budget Statement to Parliament on Thursday, November 12, Dr. Forson described fiscal space as a national asset earned through the sacrifices of Ghanaians, tax contributions and government discipline.
He cautioned that previous periods of economic recovery had often been followed by spending decisions that failed to address the structural weaknesses of the economy.
“In the past, Ghana has often created fiscal space and then failed to direct it with sufficient vehicles,” he said.
According to him, resources had previously been spread thinly across competing demands, while projects were multiplied without rigorous appraisal and short-term consumption crowded out investment in productive capacity.
He said this had left the economy with a narrow productive base that struggled to support the financial obligations of the state.
Dr. Forson therefore urged government to ensure that every investment made from the available fiscal space produces lasting economic benefits.
“Every cedi of that space must answer a national question. What jobs will it create? What import will it replace? What export will it generate? And what lasting value will it leave behind?” he said.
The Finance Minister said the government’s proposed New Economy programme would provide a framework for directing resources towards sectors capable of transforming the economy.
The programme, which is expected to run from 2027 to 2030, will focus on eight areas, including commercial agriculture, energy infrastructure, critical minerals value addition, textiles and garments, pharmaceuticals and biomanufacturing, and technology.
Government plans to commit the equivalent of US$10 billion to the programme over the four-year period.
Dr. Forson said government would preserve macroeconomic stability, provide strategic infrastructure and create predictable conditions for private enterprise, while making support transparent and linking it to verifiable results.
He said the ultimate objective was to ensure that the economic recovery becomes a foundation for sustainable production, employment and prosperity.
