Dr. Wisdom Dogbey Backs Government’s Strategy to Strengthen Cash Buffers
Economic advisor Dr. Wisdom Dogbey has lauded the Finance Minister’s outlined strategies aimed at reinforcing Ghana’s cash buffers, particularly through reforms in tax refund allocations and the implementation of the Public Financial Management (PFM) Act.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on Sunday, March 16, 2025, under the theme “Resetting the Economy: Can Ghana’s 2025 Budget Achieve Fiscal Stability and Sustainable Growth”, Dr. Dogbey underscored the importance of fiscal prudence in ensuring economic stability.
He noted that one of the key measures proposed in the 2025 budget is the adjustment to the tax refund account ceiling.
“In the last eight years, approximately GHS 29 billion was accrued in this account, yet only 43%—about GHS 12.5 billion—was used for actual tax refunds. The remaining 57% was likely misappropriated. By reducing the ceiling from 6% to 4%, the Finance Minister is ensuring an additional GHS 4 billion in savings, which can help bridge revenue gaps and strengthen the sinking fund,” Dr. Dogbey explained.
Furthermore, he highlighted the Finance Minister’s commitment to reviewing and operationalizing the PFM Act, particularly sections 37 to 44, which mandate the creation of sufficient cash buffers to enhance debt management.
“These provisions have not been effectively implemented over the years. Ensuring their enforcement would guarantee dedicated funds for debt repayment and sanctions for noncompliance,” he said.
Dr. Dogbey also pointed to additional strategies at the government’s disposal to build financial resilience. These include leveraging surplus revenue, unspent budgetary allocations, and funds from Ghana’s petroleum revenue stabilization mechanisms.
“The law allows for surplus revenue beyond a certain threshold in the stabilization fund to be transferred into the sinking fund,” he stated.
Dr. Dogbey’s remarks reinforce the significance of fiscal discipline and strategic resource allocation in Ghana’s economic recovery efforts as outlined in the 2025 budget.
