Ghana’s former Finance Minister and Presidential Adviser on the Economy, Seth Terkper, has disclosed that the government plans to borrow GH¢57 billion in 2025. This revelation comes just a day after the 2025 national budget was presented by Finance Minister Dr. Cassiel Ato Forson in parliament.
Speaking on Joy News AM Show, Mr. Terkper confirmed the borrowing plan, emphasizing that while the government has made provisions for loan repayments (amortization), this will be new borrowing sourced from both foreign and domestic lenders.
“About GH¢57 billion is going to be borrowed,” he said. “But here we made provisions for repayment, what we call the amortisation, so this is new borrowing and we will bring down the balance, and it’s going to come from foreign and domestic sources.”According to Mr. Terkper, the borrowing is part of a broader strategy to finance the country’s budget and sustain key economic activities. The government intends to use the funds to cover fiscal needs, support economic growth, and ensure essential public services and development projects continue without interruption.
The 2025 budget, as outlined by Dr. Ato Forson, includes a financial allocation of GH¢43.3 billion for various sectors such as education, infrastructure, social protection, and disaster relief.
The announcement of additional borrowing raises concerns about Ghana’s growing debt burden, which already stands at GH¢726.7 billion (61.8% of GDP). While the government insists that these loans will support economic recovery and development, some economists warn that continued borrowing without a clear repayment strategy could further strain the economy and limit future financial flexibility.