The Finance Minister, Dr. Cassiel Ato Forson, has assured expatriate investors of the government's commitment to maintaining stability and supporting long-term growth. This assurance was given following his presentation of a comprehensive plan for addressing the country's significant accumulation of government payables in 2024, as well as reinforcing fiscal discipline and transparency in public financial management.
During a meeting with investors in Washington, D.C., Dr. Forson highlighted key reforms and policy actions aimed at restoring confidence in Ghana's fiscal framework and stabilizing its macroeconomic outlook.
He discussed several important areas, including the auditing of payables and commitments, strengthening commitment controls, amending the Public Financial Management (PFM) Act and fiscal rules, and enhancing compliance and oversight.
Regarding the auditing of payables and commitments, he noted that a government-commissioned audit of all outstanding payables and commitments is central to the plan. The Ministry of Finance has enlisted the Auditor General and two independent audit firms to conduct an intensive eight-week review.
"The objective is to verify the legitimacy and accuracy of these claims," the Minister explained. "The findings will guide the implementation of corrective actions to address any irregularities and improve accountability moving forward."
On the topic of strengthening commitment controls, Dr. Forson indicated that to prevent the reoccurrence of unapproved expenditures, the government has amended the Procurement Act. Starting April 3, 2025, no government contract will be approved without prior commitment authorization from the Ministry of Finance.
"This measure is critical for enhancing spending controls and ensuring full compliance with the Public Financial Management Act," the Minister stated.
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With regard to amendments to the PFM Act and the introduction of fiscal rules, he noted that the government has revised the Public Financial Management Act of 2016 (Act 921) to establish two primary fiscal rules. The first is a debt rule aimed at reducing the debt-to-GDP ratio to 45% by 2035, and the second is an operational rule that mandates an annual primary surplus of at least 1.5% of GDP on a commitment basis.
An Independent Fiscal Council has been created to monitor adherence to these rules and to improve transparency and credibility in public finance.
In terms of enforcing compliance and oversight, Dr. Forson shared that the Ministry has established a new Compliance Division responsible for monitoring how Ministries, Departments, and Agencies (MDAs) comply with fiscal commitments. A newly appointed Director is leading the efforts of this division.
Additionally, the government will introduce a Public Financial Management Commitment Control Compliance League Table to publicly rank MDAs based on their expenditure control performance.
"These actions underscore our commitment to resolving legacy financial obligations, enforcing spending discipline, and creating a transparent and credible financial management system," Dr. Forson stated, assuring investors of the government’s dedication to maintaining stability and fostering long-term growth.
