The Ghana government has earmarked GH¢2.81 billion for road maintenance, a 155.5% increase over the previous year. Dr. Cassiel Ato Forson revealed plans to uncapped the road fund and reintroduce road tolls in a technology-driven manner to enhance revenue collection. The sector is facing significant debts due to past toll suspensions, impacting funding for necessary road projects.
The Ghanaian government has announced a substantial allocation of GH¢2.81 billion for road maintenance in the country. This figure marks a significant increase of 155.5 percent compared to the previous allocation of GH¢1.1 billion for 2024. This announcement was made by Dr. Cassiel Ato Forson, the Minister of Finance, during the presentation of the 2025 Budget Statement and Economic Policy to Parliament.
In addition to the budget increase, Dr. Forson declared that the government will uncapping the road fund, which will provide further financial support for the road sector. He emphasized the intention to reintroduce road tolls in a technologically advanced manner to enhance revenue collection and bolster the road maintenance budget. The suspension of tolls by the previous administration in 2022 has contributed to greater financial strain on road infrastructure projects.
Dr. Forson elaborated on the adverse effects of suspending tolls, noting that it has severely impacted the government’s ability to generate the necessary funds for road construction and upkeep. He pointed out that there is an increasing demand for road development and improvement alongside significant outstanding debts, with the road sector currently facing a total debt of GH¢100 billion and the road fund lacking GH¢5.75 billion.
While acknowledging that the average annual revenue collected from road tolls has been low, Dr. Forson criticized the existing zero-rate policy for road tolls for worsening the funding crisis. To address these challenges, he confirmed that the government would collaborate with stakeholders, including private sector players, to implement a new technology-driven toll collection system as part of their Big Push Programme set for 2025.
In conclusion, the Ghanaian government’s allocation of GH¢2.81 billion for road maintenance marks a significant commitment to improving infrastructure. The planned reintroduction of road tolls alongside the uncapped road fund aims to generate additional revenue necessary for road construction. However, the past suspension of these tolls has led to critical funding deficits, necessitating urgent action to rectify the situation and ensure the effective maintenance of road infrastructure in Ghana.
Original Source: www.ghanabusinessnews.com
