Ghana Government Allocates GH¢2.81 Billion for Road Maintenance

Ghana’s government allocates GH¢2.81 billion for road maintenance, a 155.5% increase from 2024. Minister of Finance Dr. Ato Forson announces uncapping of road fund and plans to reintroduce road tolls to improve revenue for infrastructure. As of late 2024, the sector faces significant debt and arrears.

The government of Ghana has earmarked GH¢2.81 billion for road maintenance, representing a 155.5 percent increase compared to the GH¢1.1 billion allocated for 2024. This announcement was made by Dr. Cassiel Ato Forson, the Minister of Finance, when he presented the 2025 Budget Statement and Economic Policy to Parliament.

In addition to the funding increase, the Minister revealed plans to uncapped the road fund to enhance financial resources for the road sector. Dr. Forson reiterated the government’s intention to reintroduce road tolls in a technology-driven manner aimed at improving revenue collection to support road maintenance.

The previous administration halted the collection of road and bridge tolls in 2022, a move that Dr. Forson stated has adversely affected revenue generation for road construction. He acknowledged that the growing demand for road infrastructure is coupled with significant arrears, placing the road sector in a precarious financial position.

As of late 2024, the road sector’s debt stands at GH¢100 billion, with the road fund owing GH¢5.75 billion. Dr. Forson emphasized that the current zero-rate policy on road tolls has significantly diminished potential revenue, prompting the need for a revamped toll strategy in collaboration with stakeholders, including the private sector, under the Big Push Programme slated for 2025.

In summary, the Ghanaian government’s substantial allocation of GH¢2.81 billion for road maintenance indicates a renewed commitment to addressing the nation’s infrastructure needs. The reintroduction of tolls and uncapping the road fund are critical measures aimed at enhancing revenue generation and tackling the sector’s significant debts, ensuring sustainable road development moving forward.

Original Source: www.ghanabusinessnews.com