The Minister of Finance, Dr Cassiel Ato Forson, has announced that the government intends to clear all arrears owed to contractors within four years.

According to him, the government inherited a backlog of arrears amounting to GH¢68 billion, which has significantly contributed to Ghana’s fiscal deficit of 3.9% of GDP.

Speaking on the Citi Breakfast Show, as monitored by GhanaWeb Business on November 14, 2025, Dr Ato Forson emphasised that making full payment in a single year would have dire consequences for the broader economy.

He explained that this is why the government is implementing a phased approach to settle all outstanding arrears.

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“We inherited GH¢68 billion, and that is what gave us the fiscal deficit of 3.9% of GDP. The government cannot pay GH¢68 billion in one year. So, first I needed to subject these claims to an audit to validate them and determine the strategy I would use to clear the arrears. In doing so, in the 2025 budget, I programmed GH¢13.8 billion for arrears payments,” he said.

He further explained that the first step taken by the government was to subject all claims to a comprehensive audit to ensure their validity before deciding on an appropriate payment strategy.

“So far, I have paid about GH¢12 billion, leaving approximately GH¢1.8 billion outstanding. I cannot exceed the GH¢13.8 billion approved by Parliament. In the 2026 budget, I programmed GH¢25 billion, which I will pay, and then settle the remainder in 2027 and possibly 2028. I believe that within four years, I should be able to clear all the arrears,” he added.

SP/MA

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