Finance Minister Dr. Cassiel Ato Forson has revealed that the central government owes a staggering GHS67.5 billion to contractors and suppliers.

Presenting the 2025 Budget Statement and Economic Policy of the government in Parliament on Tuesday, March 11, Dr Forson highlighted the significant arrears accumulated by the government, which represent 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.

Upon assuming office on January 23, 2025, Dr Forson said he was inundated with requests for payments from numerous contractors and suppliers.

To ascertain the total arrears and outstanding payments for all Ministries, Departments, and Agencies (MDAs), he said the Ministry of Finance (MoF) formally requested information on all arrears and outstanding 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.

The breakdown of the arrears includes GHS49.2 billion in outstanding interim payment invoices from the MDAs and GHS18.3 billion in bank transfers at the Controller and Accountant General’s Department.

Dr Forson also noted that this GHS67.5 billion excludes $1.73 billion owed to Independent Power Producers (IPPs), GHS68 billion owed by the Electricity Company of Ghana (ECG) to contractors, GHS32 billion owed by the COCOBOD to contractors, and GHS5.75 billion owed by the Ghana Road Fund to various contractors.

Additionally, the Bank of Ghana (BoG) is seeking an amount of GHS53 billion as a bailout to address its negative equity challenge.