Ghana’s health budget for 2025 has seen a significant increase, but concerns persist over unresolved arrears and the sustainability of healthcare funding.
Dr. Kwaku Asiedu Sarpong, a Public Health, Democracy, and Development Fellow at CDD-Ghana, has highlighted the financial challenges confronting the sector despite the planned boost in expenditure.
“The health budget is very tight. Overall, the government intends to increase health expenditure as a component of total government expenditure from 6.9% in 2024 to 9.3% this year.”
Dr. Kwaku Asiedu Sarpong
He noted that while the allocation for the health sector has increased, disbursement challenges and outstanding debts continue to burden the system.
In 2024, a total of GHC20.34 billion was allocated to the health sector, but only GHC16.32 billion was disbursed. In contrast, the 2025 budget earmarks GHC25.05 billion for health—a 23.2% rise compared to 2024.
Should this allocation receive parliamentary approval and be fully disbursed, it would mark a 53.5% increase in actual expenditure.
Dr. Sarpong revealed, however, that the ability of the government to release the full amount remains uncertain.
“Meanwhile, there are outstanding arrears in the health sector of GHC10.35 billion. This does not include arrears and outstanding funds to complete Agenda 111 hospitals.”
Dr. Kwaku Asiedu Sarpong
He pointed out that the 2025 budget does not specify how these debts will be cleared, raising concerns about the financial health of the sector.
One of the major components of Ghana’s healthcare financing, the National Health Insurance Scheme (NHIS), has also seen an increase in its budgetary allocation.
The NHIS is set to receive GHC9.93 billion in 2025, representing an 18.6% rise from the previous year.
However, due to capping policies, only GHC1.7 billion (20.1%) of the GHC8.1 billion allocated in 2024 was actually disbursed. This has contributed to an estimated NHIS debt of GHC2.5 billion, which the budget fails to address.
Dr. Sarpong warned that while the uncapping of funds has provided the health sector, particularly the National Health Insurance Scheme (NHIS), with additional financial resources, it may still struggle to sustain the Free Primary Healthcare Scheme (FPHC).
This concern highlights potential financial strain on the NHIS, raising critical questions about the long-term viability of government-backed healthcare programs.
As the demand for accessible healthcare grows, stakeholders may need to explore alternative funding mechanisms to ensure the scheme remains effective and adequately resourced.
The Viability of Free Primary Healthcare
Ghana’s ambitious Free Primary Healthcare Scheme (FPHC) is a key initiative aimed at achieving Universal Health Coverage (UHC) by 2030.
However, concerns remain about whether there is sufficient financial backing for its successful implementation.
Dr. Sarpong emphasized the importance of prudent financial planning, noting that while the funding situation appears tight, careful execution could still make the initiative viable.
“I am still doing a stress analysis of the FPHC scheme implementation but will recommend a phased rollout if funding gaps emerge.
“Initially, numbers suggest a very tight funding envelope, but with a good plan and prudent spending, it can be achieved. FPHC is the most viable pathway to achieving Universal Health Coverage by 2030.”
Dr. Kwaku Asiedu Sarpong
The introduction of the scheme is expected to ease the financial burden on citizens by providing essential healthcare services at no cost.
However, experts caution that without a clear funding structure, the initiative could struggle to meet its objectives, especially given the pre-existing financial constraints in the health sector.
As Parliament prepares to deliberate on the 2025 budget, stakeholders are calling for a transparent approach to health financing. Many expect the government to outline concrete strategies for settling arrears and ensuring the effective allocation of resources.
Addressing past inefficiencies in fund disbursement will be crucial in making the increased budget allocation meaningful.
The healthcare sector stands at a pivotal moment, with increasing demands for better service delivery and accessibility.
Although the rise in budgetary allocation signals a commitment to addressing healthcare needs, its effectiveness will ultimately hinge on the government’s ability to overcome longstanding financial hurdles and ensure prudent expenditure.
Without proper fiscal management and strategic implementation, the additional funds may not translate into meaningful improvements in healthcare infrastructure, medical supplies, or personnel capacity.
To truly enhance service delivery, the government must adopt transparent and efficient spending practices while addressing inefficiencies that have plagued the sector in the past.
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