Gov’t to intensify expenditure rationalization in third and fourth quarters – Finance Minister

Gov’t to intensify expenditure rationalization in third and fourth quarters – Finance Minister 

Minister of State at the Finance Ministry, Abena Osei Asare, in a keynote address delivered at the inaugural Quarterly Economic Roundtable, stressed Government’s unwavering commitment to fiscal discipline and expenditure rationalisation.

Representing the Finance Minister Dr. Mohammed Amin Adam, she emphasized efforts to eliminate unbudgeted expenditures, particularly in the third and fourth quarters of this election year.

The Minister of State speaking at the Roundtable, highlighted that fiscal discipline is the bedrock of macroeconomic stability, reaffirming the government’s resolve to implement measures aimed at reducing deficits and managing public debt sustainably.

“There is always a high demand for governments to overspend but we are committed to rationalizing and containing expenditures, especially in the third and fourth quarters particularly in view of the general elections to ensure that unbudgeted related expenditures are kept to the very minimum or eliminated,” she quipped.

“The foundation of macroeconomic stability is fiscal discipline and we are committed to implementing stricter fiscal policies to reduce deficits and manage the public debt sustainably,” she added. 

Ms. Osei Asare also emphasized the importance of transparency in public finance management, pointing to the implementation of the Public Financial Management (PFM) Act and enhanced accountability mechanisms as key initiatives to ensure the efficient use of public funds.

Touching on the country’s high inflation rate of 23.2%, she stated that controlling inflation is critical for protecting the purchasing power of Ghanaians and that the Bank of Ghana continues to pursue good monetary policy measures to deal with the country’s high inflation.

Ms. Osei Asare in her remarks further highlighted the government’s strategic focus on reducing Ghana’s vulnerability to external shocks by promoting investment in pivotal sectors such as agriculture, manufacturing, and technology.

Adding that flagship programmes like Planting for Food and Jobs and One District One Factory are central to this strategy aimed at fostering industrialisation, job creation, export enhancement, and bolstering economic resilience.

The Quarterly Economic Roundtable initiative aims to bridge the gap between policymakers and academia, promoting research-driven and evidence-based policy formulation.

The inaugural event focused on the theme “Restoring Macroeconomic Stability,” and addressed critical issues such as debt, fiscal and monetary policies. Distinguished panelists from the government, academia, and civil society led in-depth discussions on these issues.

The panels delved into the role of fiscal policy in macroeconomic stability, the implications of debt management, and the central bank’s inflation-targeting regime, exploring comprehensive measures to stabilise the cedi.