For many Ghanaians, the country’s debt crisis has always been seen through one familiar picture: government borrowing more than it could repay.
But Finance Minister Dr. Ato Forson says there was another part of the story happening quietly in the background.
Beyond government loans and budget deficits, State-Owned Enterprises (SOEs) were accumulating obligations that eventually found their way onto the shoulders of taxpayers.
According to the Finance Minister, liabilities built up by SOEs added the equivalent of about 3% of Ghana’s GDP to public debt every year over the past decade.
The cost, he said, was not just reflected in government accounts. It was felt through the loss of resources that could have gone into building roads, hospitals and other critical infrastructure.
Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament, Dr. Forson said several state-owned companies failed to meet their contractual obligations, forcing government to step in and settle those debts.
“This occurred because several SOEs failed to honour their contractual obligations, compelling Government to assume and settle those liabilities,” he said.
The Finance Minister said these obligations diverted resources that could have gone into critical infrastructure, contributing to a situation where Ghana’s debt increased without enough visible development to show for it.
“Resources that should have financed critical infrastructure were used to pay these SOE debts,” he said.
“This is part of the reason why Ghana’s debt grew unsustainably without the bridges, roads or hospitals to show for it.”
Dr. Forson argued that Ghana’s debt challenge was therefore not only a problem of government deficits but also the result of unchecked liabilities created by state-owned companies.
“What is the point of ensuring that Ministries, and even this Parliament, live within their means, if State-Owned Enterprises are permitted to run up liabilities that taxpayers are ultimately forced to pay?” he questioned.
To prevent a repeat of this situation, the Finance Minister said State-Owned Enterprises are now subject to Commitment Authorisation, a public spending control system that requires institutions to seek approval before entering into major financial obligations.
The system is designed to prevent SOEs from signing contracts or taking on commitments they may not have the financial capacity to honour, a situation that can eventually force government and taxpayers to absorb the cost.
