Vice President Professor Jane Naana Opoku-Agyemang says Ghana’s rising debt continues to reduce government spending on development.
She said debt repayments consume a large share of public revenue each year. As a result, the government has less money to invest in schools, hospitals, roads and social programmes.
The Vice President made the remarks during a public discussion on Ghana’s economic outlook.
Professor Opoku-Agyemang said high debt servicing costs restrict public investment.She explained that the government must first meet its debt obligations before funding many development projects.
According to her, this leaves fewer resources for infrastructure, healthcare, education and other essential services.She said reducing the debt burden would free up more money for national development.
Government Targets Fiscal Stability
The Vice President said the government remains focused on restoring fiscal stability. She noted that responsible financial management will help strengthen the economy over time. She also said sound fiscal policies can improve investor confidence and support sustainable growth.
Professor Opoku-Agyemang added that careful borrowing will help protect future generations from excessive debt.
Ghana continues to implement economic reforms to strengthen public finances. The government aims to increase domestic revenue and improve spending efficiency.
It also seeks to reduce debt risks and restore long-term fiscal sustainability. These measures form part of Ghana’s economic programme with the International Monetary Fund (IMF).
The programme supports efforts to stabilise the economy and promote sustainable growth.
Economists say high public debt can slow development. Governments often spend more on loan repayments when debt levels rise. That leaves less money for hospitals, schools, roads and other public services.
Experts also stress the need for stronger domestic revenue and disciplined public spending. They say these measures can reduce debt pressures over time.
Focus on Long-Term Growth
Professor Opoku-Agyemang said the government wants to build a stronger and more resilient economy.
She said responsible borrowing and prudent financial management remain key priorities. She also called for the efficient use of public resources. According to the Vice President, creating more fiscal space will allow Ghana to invest more in projects that improve living standards and support inclusive economic growth.
