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Finance Minister Dr. Cassiel Ato Forson has disclosed that the central government owes an alarming GHS67.5 billion to contractors and suppliers.
While presenting the 2025 Budget Statement and Economic Policy in Parliament on Tuesday, March 11, Dr. Forson emphasized the substantial arrears accumulated by the government, which constitute 5.2% of Ghana’s GDP as of December 2024.
“At the end of December 2024, total central government arrears amounted to GHS67.5 billion, representing 5.2% of GDP. Mr. Speaker, with the road sector recording arrears of GHS21 billion,” Dr. Forson stated.
He further revealed that upon assuming office on January 23, 2025, he was immediately inundated with numerous payment requests from contractors and suppliers. In response, the Ministry of Finance (MoF) sought to establish the full extent of outstanding payments across all Ministries, Departments, and Agencies (MDAs). To achieve this, the ministry formally requested detailed information on arrears and pending claims from the MDAs on January 28, 2025.
“Subsequently, Mr. Speaker, the MoF held a special hearing with the MDAs to validate the arrears submitted for payment. The response from the MDAs revealed that a staggering amount of GHS67.5 billion is owed to government contractors and suppliers,” Dr. Forson explained.
Breaking down the arrears, he noted that GHS49.2 billion represents outstanding interim payment invoices from MDAs, while GHS18.3 billion is associated with bank transfers at the Controller and Accountant General’s Department.
Additionally, Dr. Forson highlighted that the GHS67.5 billion debt does not include other significant financial obligations, such as $1.73 billion owed to Independent Power Producers (IPPs), GHS68 billion in debts owed by the Electricity Company of Ghana (ECG) to contractors, GHS32 billion owed by the COCOBOD to contractors, and GHS5.75 billion outstanding from the Ghana Road Fund to various contractors.
Moreover, the Bank of Ghana (BoG) is requesting GHS53 billion as a bailout to address its negative equity challenges.
The Finance Minister’s revelations underscore the scale of Ghana’s fiscal challenges, highlighting the urgent need for measures to manage and settle these arrears.
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