The Ghana government has allocated GH¢2.81 billion for road maintenance, a 155.5% increase from last year. Finance Minister Dr. Cassiel Ato Forson announced plans to reintroduce tolls and uncapped the road fund to improve revenue collection for road infrastructure amidst rising debts in the sector.
The Ghanaian government has allocated GH¢2.81 billion for road maintenance in the country. This figure marks a substantial increase of 155.5 percent compared to the GH¢1.1 billion previously designated for this sector in 2024. Dr. Cassiel Ato Forson, the Minister of Finance, presented this information during the 2025 Budget Statement and Economic Policy address to Parliament.
Dr. Forson also announced the decision to uncapping the road fund to enhance financial support for the road sector. He reiterated the government’s commitment to reintroducing road tolls in a technologically-driven manner to bolster revenue generation, which had previously been halted by the previous administration in 2022.
The Minister expressed concerns that the suspension of road tolls had deteriorated the condition of the road sector, hampering the generation of necessary funds for construction and maintenance. He indicated that the demand for improved road infrastructure is increasing while the sector faces substantial arrears and claims.
As of the end of 2024, Dr. Forson reported that the road sector is indebted to the sum of GH¢100 billion, with the road fund itself owing GH¢5.75 billion. He stated, “While the annual average collections from road tolls have not been significant compared to its potential, the existing zero-rate policy for road tolls has exacerbated the situation.”
To address this issue, the government plans to collaborate with various stakeholders, including the private sector, to implement a technologically-driven solution for the reintroduction of road tolls in 2025, which will be part of the Big Push Programme.
In conclusion, the Ghanaian government’s prioritization of GH¢2.81 billion for road maintenance illustrates a significant commitment to improving national infrastructure. The reintroduction of road tolls, alongside the uncapping of the road fund, intends to bolster revenue and address the escalating financial challenges plaguing the road sector. The collaboration with stakeholders marks an essential step towards enhancing road infrastructure and maintenance capabilities in Ghana.
Original Source: www.ghanabusinessnews.com
