Publish the absolute size of the national debt stock - IERPP tells Finance Minister

The Institute for Economic Research and Public Policy (IERPP) has called on the Government of Ghana to provide greater transparency regarding the country's fiscal position, arguing that the 2026 Mid-Year Budget Review presents an incomplete picture of the nation's economic health despite highlighting improvements in key macroeconomic indicators.

In a statement issued after Finance Minister Dr. Cassiel Ato Forson presented the 2026 Mid-Year Budget Review to Parliament on Thursday, July 23, the policy think tank acknowledged progress in stabilizing the economy but insisted that critical financial obligations and liabilities remain undisclosed.

According to IERPP, while the government emphasized declining inflation, a relatively stable Ghana cedi, and an improved debt-to-GDP ratio, it failed to disclose several important figures that would allow Parliament and the public to accurately assess Ghana's fiscal outlook.

One of the Institute's primary concerns is the omission of the total liabilities accumulated by State-Owned Enterprises (SOEs). The budget review recognizes that SOEs have added liabilities equivalent to approximately 3% of Ghana's Gross Domestic Product (GDP) annually over the past decade. It also confirms that a GH¢5 billion bond was issued in March 2026 to recapitalize the Bank of Ghana following losses resulting from the 2023 Domestic Debt Exchange Programme (DDEP).

However, IERPP argued that the Finance Minister stopped short of revealing the total value of accumulated SOE liabilities in cedi terms or the Bank of Ghana's complete capital deficit.

The Institute said that without these figures, Parliament and Ghanaians are being asked to evaluate what appears to be an improving fiscal position while substantial financial obligations remain outside public scrutiny.

IERPP has urged the government to publish the country's total national debt in both Ghana cedis and U.S. dollars alongside every debt-to-GDP ratio presented in future fiscal reports.

It also wants the government to disclose the complete terms, intended purpose, repayment schedule, and utilization plan for the recently approved financing facility worth approximately US$1 billion, including the US$300 million World Bank/IDA education facility.

Additionally, the think tank is asking the government to clearly explain whether the Free Senior High School (Free SHS) programme continues to be financed entirely through domestic resources or whether foreign borrowing now contributes indirectly to its implementation.

IERPP further called on authorities to publicly explain the legal judgment that resulted in the freezing of the national Contingency Fund through a High Court garnishee order and to clarify the fund's current legal status.

The Institute also wants government to publish the full accumulated liabilities of State-Owned Enterprises and provide an updated assessment of the Bank of Ghana's capital position.

While acknowledging improvements in inflation, debt indicators, and currency stability, IERPP stressed that transparency should accompany every economic achievement.

The Institute stated that it is not disputing the progress made under current economic management but is questioning whether the government has fully disclosed the financial realities behind those gains.

According to the statement, sustainable economic credibility depends not only on reporting positive developments but also on openly addressing unresolved financial obligations and unexplained fiscal gaps.

IERPP emphasized that governments confident in their economic record should be equally committed to openness and accountability.

The think tank also criticized the Mid-Year Budget Review for failing to provide updates on two flagship government initiatives—the 24-Hour Economy programme and the Nkonko-Nkitinkiti poultry initiative.

IERPP noted that the 24-Hour Economy policy, heavily promoted by the National Democratic Congress (NDC) as a major strategy to tackle unemployment, received GH¢110 million in the 2026 Budget presented in November 2025.

Despite that allocation, the review did not disclose how many jobs have been created, how many workers are currently employed under the programme, or which companies are participating.

Similarly, the Nkonko-Nkitinkiti programme, which received GH¢245 million to boost local poultry production, create employment, and reduce dependence on imported chicken, received no performance update in the budget review.

IERPP argued that the absence of implementation reports on these flagship initiatives leaves Ghanaians without the information needed to assess whether public funds are delivering expected outcomes.

The Institute also questioned the government's emphasis on the decline in Ghana's debt-to-GDP ratio from 61.8% at the end of 2024 to 45.0% by June 2026.

According to IERPP, debt ratios alone do not necessarily reflect a reduction in actual debt because they can improve as the economy grows or due to changes in exchange rates.

The organization cited Bank of Ghana data indicating that total public debt increased from GH¢663.4 billion in January 2026 to GH¢720.8 billion by May 2026—an increase of approximately GH¢57 billion within five months.

IERPP further noted that the May 2026 debt level remains close to the GH¢726 billion recorded at the end of December 2024, suggesting that Ghana's overall debt burden has not significantly declined despite improvements in the debt ratio.

The Institute therefore urged the government to present both debt ratios and absolute debt figures together to provide a more complete picture of the country's financial position.

IERPP also criticized the budget review for failing to mention a recently approved financing facility worth roughly US$1 billion.

According to the Institute, Parliament had already debated the loan facility after concerns were raised by the Minority's First Deputy Whip, who urged government to utilize existing credit facilities before contracting additional loans.

Despite the facility's significance, the Mid-Year Budget Review reportedly contains no detailed explanation of its purpose, repayment terms, or how it fits into Ghana's broader debt management strategy.

IERPP argued that any comprehensive account of Ghana's debt position should include newly approved borrowing commitments.

The think tank also questioned the government's continued description of Free SHS as a programme financed entirely through domestic resources.

While the budget review allocates GH¢1.8 billion toward Free SHS, the government has also secured a US$300 million World Bank/IDA facility to finance school construction, rehabilitation, and infrastructure improvements.

IERPP acknowledged the government's position that the loan finances infrastructure rather than the programme's recurrent expenses but argued that the distinction deserves greater public explanation.

According to the Institute, many Ghanaians may reasonably conclude that if the schools supporting Free SHS are financed through external borrowing, then the programme itself benefits indirectly from those loans.

Another major issue raised by IERPP concerns the freezing of Ghana's Contingency Fund following a garnishee order issued by an Accra High Court.

The government disclosed that GH¢350 million had to be reallocated from the Contingency Vote to finance flood relief because the Contingency Fund was legally inaccessible.

IERPP described this development as deeply concerning and questioned why a national emergency fund could become unavailable during a period of urgent national need.

The Institute is demanding that government explain the legal judgment behind the court order, disclose the liability involved, and reassure the public that the country's emergency financial reserves remain adequately protected.

The Institute concluded by urging the government to complete the fiscal narrative presented in the 2026 Mid-Year Budget Review through comprehensive disclosure of debt obligations, liabilities, loan agreements, flagship programme performance, and other outstanding fiscal issues.

According to IERPP, transparency, accountability, and complete financial reporting are essential for strengthening public confidence and ensuring informed national debate on Ghana's economic recovery.