Dr. Cassiel Ato Forson, President Mahama’s nominee for Finance Minister, has pledged to implement stringent fiscal measures aimed at reducing Ghana’s inflation to single digits
Speaking during his vetting on January 13, Dr. Forson outlined plans to stabilize the economy by curbing excessive government spending and reducing the nation’s dependence on borrowing.
Dr. Forson revealed that his primary goal is to bring inflation down to a target range of 8%, stating, “I believe with robust measures, particularly on expenditure control, we can achieve an inflation rate of 8% plus or minus two. This will enable us to reopen the domestic bond market and reduce over-reliance on the treasury bill market.”
Restoring Economic Confidence
The Finance Minister-designate emphasized the importance of fiscal discipline in restoring confidence in the economy.
“If financing is limited, it is crucial to look inward. We must address expenditure, cut unnecessary spending, and acknowledge the reality that resources are constrained. Just as other countries have done, we can achieve this too,” he remarked.
Tackling Wasteful Spending
Dr. Forson underscored the need to eliminate wasteful government spending, promising to lead efforts in this direction.
“My approach will prioritize reducing wasteful expenditure. We can not rely on continuous borrowing. It’s time to make tough decisions and ensure we operate within our financial means,” he said, calling on Parliament to support his initiative.
Engaging Development Partners
To address Ghana’s fiscal challenges, Dr. Forson proposed collaborating with development partners such as the African Development Bank, World Bank, European Union, and other bilateral agencies. He also indicated the possibility of working with the International Monetary Fund (IMF) if necessary to secure affordable financing.
“If required, we will engage our development partners to access cheaper financing options, particularly for expenditures that foster sustainable and inclusive growth,” he concluded.
Dr. Forson’s proposals signal a commitment to prudent fiscal management and sustainable economic growth.
