Tano North Member of Parliament, Dr. Boako, has openly criticized the government's strategy of using loans to finance the Free Senior High School (SHS) program. Speaking in Parliament on Tuesday, July 21, 2026, Dr. Boako emphasized that the government must demonstrate its commitment to education. He called for the allocation of sufficient locally generated revenue to sustain the crucial program.
This statement underscores a growing concern regarding the financial sustainability of major government initiatives. Relying on external borrowing for recurrent expenditure, such as education, can strain national finances. It also potentially increases Ghana's public debt burden, which stood at GHS 480 billion by the end of 2025.
Ghana's economic narrative has frequently revolved around managing its debt profile and enhancing domestic revenue mobilization. The Free SHS program, a flagship policy introduced in September 2017, has significantly increased enrollment in secondary education. However, its funding model has consistently drawn scrutiny from economists and policy analysts. The program's annual cost is estimated to be over GHS 2 billion, a substantial portion of the national budget.
Dr. Boako's remarks align with broader calls from various stakeholders for fiscal prudence and self-reliance. Experts like Professor Peter Quartey of the Institute of Statistical, Social and Economic Research (ISSER) have often advocated for a robust domestic revenue base. This would reduce dependence on borrowing for essential services. The MP's intervention suggests a parliamentary push for a more sustainable funding approach for social programs.
The implications of this debate are significant for Ghana's economic future. A shift towards local revenue funding for Free SHS could alleviate pressure on the national budget and reduce debt accumulation. It would also signal a stronger commitment to fiscal discipline. Decision-makers will need to consider alternative revenue streams or re-evaluate existing expenditure to meet this demand. The public and financial markets will closely watch how the government responds to these calls for fiscal reform, especially concerning key social interventions like education.
The government's ability to generate adequate internal funds will be crucial in maintaining the Free SHS program's quality and accessibility. This ongoing discussion highlights the delicate balance between social welfare policies and economic sustainability. Future budget allocations and revenue strategies will reveal the government's direction on this critical issue. The debate also reflects a broader national conversation about ensuring long-term financial health for Ghana.