The Minister of Finance, Dr. Cassiel Ato Forson has elaborated on critical fiscal measures aimed at addressing Ghana’s pressing health funding gap and stabilizing the national currency, the Cedi.
In an address to Parliament, Dr Ato Forson highlighted a significant funding shortfall of $156 million, necessitating strategic interventions by the government.
He announced that a portion of the funds obtained from the uncapping of the National Health Insurance Levy (NHIL) would be allocated to bridge the financial gap, particularly in light of the suspension of USAID funding.
“Given the reality of the funding gap of 156 million US dollars, the government would take the following measures to close the funding gap.
“Mr. Speaker, as part of the resources that will be made available as a result of the uncapping of the National Health Insurance Levy, part of it will be used to close the gap created following the suspension of the USAID funding”.
Minister of Finance, Dr. Cassiel Ato Forson
In addition, Dr. Ato Forson revealed that an allocation of GHS 100 million had been made within the Ministry of Health’s goods and services budget under the Global Fund expenditure line.
This allocation, he assured, would be used to procure vaccines previously funded by USAID, thereby ensuring continuity in essential healthcare services.
Cedi Depreciation and Stability Measures
Turning his attention to the depreciation of the Ghanaian Cedi, Dr. Ato Forson provided an update on its performance against the US dollar.
He noted that as of March 14, 2025, the Cedi had depreciated by 5.3% against the US dollar, compared to a 5.7% depreciation over the same period in 2024.
This depreciation, he explained, was driven by a combination of factors, including tight foreign exchange (FX) liquidity and increased demand for FX in energy sector payments and commerce.
However, he pointed out that since February 19, 2025, the Cedi had experienced relative stability due to interventions by the Bank of Ghana (BoG).
“The Cedi has, however, witnessed stability since 19th February, on the back of central bank forex interventions aimed at improving FX liquidity and market confidence”.
Minister of Finance, Dr. Cassiel Ato Forson
To maintain and enhance exchange rate stability, Dr. Ato Forson outlined several government initiatives to complement the Bank of Ghana’s monetary and exchange rate policies.
These measures include the establishment of GoldBod, asserting that the government plans to establish GoldBod to enhance foreign exchange generation and accumulation, which will support Cedi’s stability.
The Finance Minister also noted that the Bank of Ghana will continue implementing FX forward auctions to help stabilize the Cedi against major international currencies.
On fiscal consolidation, Dr Forson indicated that government’s commitment to strong fiscal consolidation through a reduction in public sector spending and fiscal deficit is expected to ease pressures on the exchange rate.
Finally, the Minister emphasized that the new administration’s import substitution drive under the 24-Hour Economy to encouraging domestic production of key goods that are currently imported will reduce Ghana’s reliance on foreign exchange for imports, thereby improving FX stability.
Dr. Ato Forson’s address underscores the government’s attempt to navigate Ghana’s economic challenges by leveraging fiscal discipline, strategic healthcare funding, and foreign exchange management.
His statements also reflect the government’s broader commitment to ensuring macroeconomic stability amid global and domestic pressures.
The proposed interventions, particularly the establishment of GoldBod and the 24-Hour Economy initiative, highlight a policy shift toward long-term economic resilience and self-sufficiency.
However, the effectiveness of these measures will largely depend on timely execution and consistency in policy implementation.
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