The Mahama-led government has removed expenditure restrictions on the Ghana Education Trust Fund (GETFund), the National Health Insurance Levy (NHIL), and the Road Fund to strengthen financing for critical sectors, including education, healthcare, and road infrastructure.

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Finance Minister Dr. Cassiel Ato Forson announced this policy shift while presenting the 2025 Budget Statement to Parliament on Tuesday, emphasizing the government's commitment to improving essential public services.

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"Mr. Speaker, we have uncapped the National Health Insurance Levy (NHIL). An amount of GH¢9.93 billion has been programmed for the National Health Insurance Scheme (NHIS)," Dr. Forson stated.

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He explained that the NHIS funds would cover claim payments, essential medicines, vaccine procurement, Free Primary Healthcare, the newly introduced Ghana Medical Care Trust (MahamaCares), and bridging the USAID financing shortfall.

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As of July 2024, GH¢5.4 billion had been disbursed to support the Livelihood Empowerment Against Poverty (LEAP) programme, the School Feeding Programme, the Capitation Grant, and the NHIS since January 2023.

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On education, Dr. Forson highlighted a significant boost in funding for the Free Senior High School (SHS) programme, with GH¢3.5 billion allocated in the 2025 budget.

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"Mr. Speaker, this year, the budget for the free secondary education programme is GH¢3.5 billion. By uncapping the GETFund, we will be making available an additional GH¢4.1 billion to the GETFund," he disclosed.

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The government aims to assess the state of Ghana’s education system and introduce evidence-based reforms, prompting a call for a National Education Conference.

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As of November 2024, the previous government had spent over GH¢12 billion on implementing the Free SHS policy since its inception in 2017.

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Dr. Forson also announced increased funding for road maintenance to improve the country’s road infrastructure.

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"Mr. Speaker, we have also uncapped the Road Fund. An amount of GH¢2.81 billion has been programmed for the Ghana Road Fund to be used solely for road maintenance. This represents an increase of 155.5% over the 2024 allocation of GH¢1.1 billion," he stated.

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Addressing challenges in the road sector, the minister revealed that by the end of December 2024, total central government arrears/payables had reached GH¢67.5 billion, representing 5.2% of GDP, with the road sector alone accounting for GH¢21 billion.

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Upon assuming office on January 23, the Ministry of Finance was inundated with payment requests from government contractors and suppliers. To determine the total outstanding claims for all Ministries, Departments, and Agencies (MDAs), the Finance Ministry formally requested, on January 28, that MDAs submit information on all arrears/payables as of the end of 2024. The ministry then held special hearings with MDAs to validate the submitted figures.

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The removal of expenditure caps on these funds is expected to enhance the government’s ability to address financing gaps in key sectors, ensuring uninterrupted services and improved infrastructure.

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