Financial sector will require GHC 10.45 billion to address legacy issues and emerging risks, says Ato Forson

The Finance Minister, Cassiel Ato Forson, has said that despite ongoing recovery efforts, the financial sector remains fragile and requires a substantial injection of funds.

Presenting the government’s 2025 Budget Statement and Economic Policy to Parliament on Tuesday, 11 March, Ato Forson painted a challenging picture of Ghana’s fiscal health, highlighting persistent financial sector struggles, revenue collection improvements, and significant expenditure overruns.

“As we speak, the financial sector is still struggling, and it will require 10.45 billion Ghana cedis to address legacy issues and emerging risks. In addition, an amount of 2.2 billion Ghana cedis is required to fully capitalise the National Investment Bank and the Agricultural Development Bank of Ghana,” he stated.

Forson revealed that while revenue collection surpassed projections due to higher-than-expected oil and gas receipts and non-oil tax revenues, spending significantly exceeded budgeted provisions.

According to Forson, provisional data showed a worsening primary balance on a commitment basis, with the deficit increasing from 0.2% of GDP in 2023 to 3.4% in 2024, missing the target surplus of 0.5% of GDP. On a cash basis, the primary balance stood at a deficit of 1.2% of GDP against a target of 0.6% of GDP, representing a 100% deviation.

“The overall fiscal balance on a commitment basis for 2024 recorded a deficit of 7.9% of GDP against a target of 4.2% of GDP. On a cash basis, the deficit stood at 5.2% of GDP, just slightly below the projected 5.3%,” he added.

The minister emphasised the need for stringent fiscal discipline and policy adjustments to realign Ghana’s economic trajectory in the coming year.

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