Public spending must be reformed to avoid economic collapse – Finance Minister

Finance Minister Dr. Cassiel Ato Forson has warned that excessive and inefficient public spending is pushing Ghana toward economic instability.

Speaking at the National Economic Dialogue in Accra, he stressed the urgent need for tighter fiscal discipline and better resource allocation.

Dr. Forson noted that government expenditure has outpaced GDP growth over the past decade due to inflexible spending on wages, energy subsidies, and ballooning interest payments.

He criticized poor resource allocation in critical sectors such as healthcare, where only 58% of NHIS funds go toward claims education, and unfinished infrastructure projects like Agenda 111.

Additionally, he highlighted the unsustainability of the energy sector, which is burdened by high generation costs and revenue losses.

To address these issues, he called for targeted reforms, the restructuring of state-owned enterprises, and stricter procurement controls.