Vice President Professor Naana Jane Opoku-Agyemang has warned that Ghana’s heavy debt burden continues to divert critical resources away from development, limiting the government’s ability to invest in key sectors such as education, healthcare, infrastructure and social protection.
Speaking at a public policy forum, the Vice President said debt servicing obligations have placed enormous pressure on the national budget, forcing the government to allocate substantial portions of public revenue to debt repayments instead of financing development projects that directly improve the lives of citizens.
She noted that while Ghana has made progress in stabilising the economy, the country must remain committed to prudent fiscal management and responsible borrowing to avoid repeating past debt challenges.
According to Prof. Opoku-Agyemang, reducing the debt burden is essential to creating fiscal space for investments that promote economic growth, job creation and improved public services.
She stressed that sustainable economic development requires disciplined public financial management, increased domestic revenue mobilisation and efficient use of state resources.
The Vice President also called for stronger collaboration between government institutions, development partners and the private sector to support long-term economic transformation while ensuring that borrowed funds are directed toward productive investments.
Economic analysts say Ghana’s debt servicing commitments have significantly constrained public spending in recent years, with large repayments reducing the amount available for capital projects and other priority programmes.
The government has continued implementing fiscal reforms and debt restructuring measures aimed at restoring macroeconomic stability and placing the country’s public finances on a sustainable path.
Observers believe maintaining fiscal discipline, broadening the tax base and accelerating economic growth will be crucial in reducing Ghana’s debt burden and freeing up resources for national development.
The Vice President reaffirmed the government’s commitment to pursuing policies that strengthen the economy while ensuring that public resources are used efficiently to improve the welfare of Ghanaians.
