Finance Minister Dr. Cassiel Ato Forson has criticized the previous New Patriotic Party (NPP) administration, describing the inherited state of the economy as ‘a crime scene.’
During his Mid-Year Budget Review in Parliament on Thursday, Dr. Forson painted a negative picture of the economy when the NDC government took office in January 2025, highlighting significant debts, failed reforms, weak institutions, and widespread public distrust.
He pointed to a complete lack of coordination between the Ministry of Finance and the Bank of Ghana under the previous government, characterizing it as the highest level of incompetence. Dr. Forson stated that the Mahama administration chose to act decisively to address the challenges instead of focusing on the past.
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“We made a conscious decision not to make excuses, but to reset our country. We renewed our social contract with the Ghanaian people and redefined national priorities by being deliberate in both our policy choices and approach to economic management,” he said.
Dr. Ato Forson listed a litany of economic challenges the new administration inherited from the Akufo-Addo-Bawumia-led NPP government. These included:
- Over GH¢67 billion in arrears and GH¢194 billion in contract commitments.
- A debt-laden cocoa sector with GH¢32 billion in liabilities.
- An energy sector shortfall exceeding US$1.5 billion annually.
- Collapsed micro and small enterprises.
- Soaring inflation, loss of real income, and massive unemployment.
- Public institutions paralyzed by insolvency.
- A devastating haircut through the Domestic Debt Exchange Programme (DDEP), which wiped out pensioners and middle-class savings.
“Public trust was completely eroded. The national spirit was broken. The foundation of our economy had sunk even deeper,” he stated.
Dr. Forson cited the IMF’s assessment, which he said confirmed that by the end of 2024, the program inherited was ‘substantially off track.’
“The deputy managing director of the IMF, Mr. Bo Li, noted the program had deviated substantially from its targets by close of 2024,” he revealed.
Highlighting the Mahama government’s early reforms, Dr. Forson pointed to the National Economic Dialogue and Education Forum, and extensive stakeholder consultations, as key steps toward restoring policy credibility.
He said the government’s new economic model focused on fiscal discipline without cutting social spending—a balance that has now earned the approval of the IMF executive board.
“We are tightening fiscal discipline without compromising social spending. We are deliberately rebuilding trust and restoring governance,” he emphasized.
The minister also disclosed the staggering debt repayment pressures facing the country, including GH¢20 billion in 2026, GH¢50.3 billion in 2027, and GH¢45.8 billion in 2028, figures that threaten long-term fiscal stability.
He lamented the complete depletion of the country’s financial buffers, including an ’empty’ sinking fund and stalled infrastructure projects worth over US$3 billion due to bilateral debt restructuring.
“The mismanagement of public finances by the previous administration led to a devastating haircut through the DDEP… It denied pensioners their life savings, and in fact, their dignity,” Dr. Forson said.
Despite the gloomy backdrop, the Minister struck a note of cautious optimism. “The NDC administration has taken bold corrective actions to maintain the program on track,” he said, assuring that the Mahama-led government is committed to resetting Ghana’s economy through reforms, accountability, and prudent management.