Ghana’s government has allocated GH¢2.81 billion for road maintenance, a 155.5% increase over 2024. Finance Minister Dr. Cassiel Ato Forson announced plans to uncapped the road fund and reintroduce technology-driven road tolls to boost revenue as the sector faces significant debt and infrastructure demands.
The Ghanaian government has earmarked a substantial GH¢2.81 billion for road maintenance, marking a 155.5% increase from last year’s allocation of GH¢1.1 billion. This announcement was made by Finance Minister Dr. Cassiel Ato Forson during his presentation of the 2025 Budget Statement to Parliament.
Dr. Forson revealed plans to uncapped the road fund to enhance financial resources for the road sector, emphasizing a technology-driven approach to reintroducing road tolls aimed at improving revenue collection. This initiative comes after the previous administration halted toll collection in 2022, which he argued worsened revenue generation for road projects.
The Finance Minister highlighted the pressing demand for improved road infrastructure alongside a significant debt issue within the sector. By the end of 2024, road sector debt had reached GH¢100 billion, with the road fund alone owing GH¢5.75 billion. He stressed that the existing zero-rate toll policy jeopardizes both revenue generation and future maintenance efforts.
He stated, “The existing zero-rate policy for road tolls has exacerbated the situation and dimmed any prospects of raising enough revenue from tolls for road construction and maintenance.” Plans for 2025 include collaboration with stakeholders and the private sector to enact a comprehensive, technology-driven toll solution as part of the Big Push Programme.
The Ghana government has significantly increased its allocation for road maintenance, aiming to address pressing infrastructure challenges. Through the reintroduction of road tolls combined with private sector collaboration, the government seeks to stabilize funding sources while addressing existing debts in the road sector. This move is crucial for enhancing road infrastructure and ensuring sustained maintenance efforts going forward.
Original Source: www.ghanabusinessnews.com
