The Minister of Finance, Dr Cassiel Ato Forson, has detailed a comprehensive strategy to tackle the country’s significant buildup of government payables this year, emphasising fiscal discipline and transparency in public financial management.
Speaking during an investor meeting in Washington DC, USA, Dr Forson outlined key reforms and policy measures designed to restore confidence in Ghana’s fiscal framework and stabilise the country’s macroeconomic outlook.
Audit underway
A critical component of the plan is a government-commissioned audit of all outstanding payables and commitments.
The Ministry of Finance has enlisted the Auditor General, along with two independent audit firms, to conduct an intensive eight-week review.
According to the minister, the exercise was aimed at verifying the legitimacy and accuracy of those claims.
The findings will inform corrective actions to resolve irregularities and enhance accountability in public financial management.
Tighter Controls
In order to curb unauthorised expenditure, the government has amended the Procurement Act. Effective April 3, 2025, no government contract has been approved without prior commitment authorisation from the Ministry of Finance.
Dr Forson stressed that the measure was essential for strengthening expenditure controls and ensuring full compliance with the Public Financial Management (PFM) Act.
Amendments to PFM Act
The government has also revised the Public Financial Management Act, 2016 (Act 921), introducing two major fiscal rules.
The first is a debt rule targeting a reduction in the debt-to-GDP ratio to 45 per cent by 2035.
The second is an operational rule requiring an annual primary surplus of at least 1.5 per cent of GDP on a commitment basis.
To oversee compliance, an Independent Fiscal Council has been established to monitor adherence to these rules, enhancing transparency and credibility in public finance management.
Compliance Measures
Further reinforcing fiscal discipline, the ministry has operationalised a new Compliance Division to monitor how Ministries, Departments and Agencies (MDAs) adhere to fiscal commitments.
A newly appointed director is leading this initiative.
Additionally, the government will introduce a Public Financial Management Commitment Control Compliance League Table to publicly rank MDAs based on their expenditure control performance.
Dr Forson reiterated the government’s dedication to resolving legacy financial obligations, enforcing spending discipline and fostering a transparent financial management system.
He assured investors of the administration’s commitment to maintaining stability and supporting sustainable long-term economic growth.
