Dr Cassiel Ato Forson, Minister of Finance
Minister of Finance, Dr Cassiel Ato Forson has presented a comprehensive plan to investors aimed at addressing Ghana’s significant accumulation of government payables in 2024, while reinforcing fiscal discipline and transparency across public financial management.
Speaking at a meeting with investors in Washington, D.C., USA, Dr Ato Forson highlighted key reforms and policy actions underway to restore confidence in Ghana’s fiscal framework and stabilise the country’s macroeconomic outlook.
Auditing payables and commitments
At the heart of the plan is a government-commissioned audit of all outstanding payables and commitments. The Ministry of Finance has engaged the Auditor General, along with two independent audit firms, for 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 resolve any irregularities and improve accountability going forward,” he added.
Strengthening commitment controls
To prevent the recurrence of unapproved expenditures, the government has amended the Procurement Act. Effective 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 (PFM) Act,” the Minister stated.
PFM Act amendment and fiscal rules
The government has also amended 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% by 2035. The second is an operational rule mandating an annual primary surplus of at least 1.5% of GDP on a commitment basis.
An Independent Fiscal Council has been established to monitor adherence to these rules and to enhance transparency and credibility in public finance.
Enforcing compliance and oversight
To institutionalise fiscal discipline further, the Ministry has operationalised a new Compliance Division tasked with monitoring how Ministries, Departments, and Agencies (MDAs) comply with fiscal commitments. A newly appointed Director now leads the division’s efforts.
Additionally, the government will introduce a Public Financial Management Commitment Control Compliance League Table to publicly rank MDAs based on their expenditure control performance.
Restoring confidence
“These actions underscore our commitment to resolving legacy financial obligations, enforcing spending discipline, and creating a transparent and credible financial management system,” the Finance Minister stated, assuring investors of the government’s determination to maintain stability and support long-term growth.