Finance Minister, Dr. Cassiel Ato Forson, has unveiled a clear roadmap aimed at tackling the country’s accumulated government payables for 2024, as part of sweeping reforms to restore fiscal discipline and rebuild investor confidence.
The plan, shared during a high-level investor meeting in Washington, D.C., outlined decisive actions designed to strengthen transparency, enhance spending control, and stabilize Ghana’s macroeconomic framework.
At the heart of the plan is a comprehensive audit of all outstanding government payables and contractual commitments. The Ministry of Finance, in collaboration with the Auditor-General and two independent audit firms, is conducting an eight-week audit, which Dr. Forson said is on track to conclude within six weeks.
“The objective is to verify the legitimacy of these claims. The findings will guide corrective actions to address any irregularities and strengthen future accountability,” Dr. Forson stated.
Tightening Commitment Controls
To prevent a repeat of past fiscal indiscipline, the government has amended the Procurement Act, effective April 3, 2025. Under the new regulations, no central government contract can proceed without prior commitment authorization from the Ministry of Finance.
“This step is vital to reinforcing spending discipline and enforcing full compliance with the Public Financial Management (PFM) Act,” the Minister noted.
New Fiscal Rules Under PFM Reform
Further strengthening the fiscal framework, the government has amended the PFM Act, 2016 (Act 921), introducing two new fiscal rules. Firstly, a debt rule to reduce the debt-to-GDP ratio to 45% by 2035.The other is a primary surplus rule, requiring a minimum 1.5% surplus of GDP annually on a commitment basis. An Independent Fiscal Council has been established to monitor compliance and enhance public trust in Ghana’s financial stewardship.
Enforcing Accountability Across MDAs
Further institutionalizing fiscal discipline, the Ministry of Finance has set up a Compliance Division, led by a newly appointed Director. The division is tasked with monitoring how Ministries, Departments, and Agencies (MDAs) adhere to spending controls.
In addition, a PFM Commitment Control Compliance League Table will be launched soon, publicly ranking MDAs based on their compliance with fiscal rules to incentivize better financial management.
Rebuilding Trust and Investor Confidence
Dr. Forson assured investors that these reforms are evidence of the government’s unwavering commitment to restoring macroeconomic stability, resolving legacy financial obligations, and creating a transparent, credible financial management system.
