Finance Ministry flags youth jobs, economic pressure without fiscal reforms
The Ministry of Finance has raised the alarm over looming demographic and economic pressures, cautioning that without decisive fiscal reforms the country could face severe strain on jobs, public services and macroeconomic stability.
Chief Director of the Finance Ministry, Patrick Nomo, citing United Nations projections, disclosed that Ghana’s population is expected to hit 45 million by 2040, with nearly 58 per cent under the age of 30.
This surge means almost 10 million young Ghanaians will enter the labour market within the next 15 years, a development he described as both an opportunity and a risk.
Speaking at a high-level roundtable on the design of Ghana’s proposed independent Fiscal Council, Mr Nomo urged policymakers to radically rethink public financial management.
“We must do things differently. We must become more effective and efficient in how we manage the public purse if we are to meet our national aspirations and respond to the legitimate needs of our young people,” he cautioned.
Preventing Past Mistakes
He observed that past episodes of fiscal mismanagement had contributed to persistent macroeconomic instability, currency depreciation and debt distress, ultimately stifling business growth and household welfare.
The establishment of a stronger and empowered Fiscal Council, he explained, is central to avoiding such pitfalls.
The body, which will be backed by an amended Public Financial Management Act, is expected to act as a fiscal watchdog by enforcing rules, monitoring government spending and safeguarding resources for future generations.
Key among its mandates will be the enforcement of a new debt-to-GDP ceiling of 45 per cent by 2034, designed to anchor long-term fiscal discipline.
Building Consensus
Mr Nomo disclosed that the Ministry has already begun preparing the 2026 Budget and pledged that stakeholder contributions would be incorporated to ensure reforms respond to both present challenges and the projected demographic shift.
“We cannot afford to ignore the realities before us. This generation of young people will demand not just jobs but sustainable infrastructure, healthcare and education. Our fiscal framework must rise to meet that challenge,” he stressed.
The roundtable was convened by IMANI Ghana and the International Institute for Sustainable Development (IISD), and drew participants from civil society, academia, business and government.
Discussions focused on shaping the structure and independence of the Fiscal Council to ensure it commands credibility and public trust.
