Finance Minister Outlines Measures to Clear Government Payables and Enforce Fiscal Discipline
Finance Minister, Dr. Cassiel Ato Forson, has outlined a sweeping set of policy measures aimed at addressing the country’s growing stockpile of government payables, while reinforcing fiscal discipline and transparency in the management of public finances.
Speaking at a high-level meeting with investors in Washington D.C., USA, Dr. Forson noted that the initiatives are part of government’s broader strategy to restore investor confidence, strengthen Ghana’s fiscal framework, and safeguard macroeconomic stability.
Central to the government’s plan is an eight-week audit of all outstanding payables and contractual commitments. According to Dr. Forson, the Ministry of Finance has commissioned the Auditor General and two independent audit firms to verify the legitimacy and accuracy of existing claims.
“The objective is to verify the legitimacy and accuracy of these claims,” said the Minister. “The findings will guide the implementation of corrective actions to resolve any irregularities and improve accountability going forward.”
Tightening Commitment Controls
In a decisive move to curb unapproved expenditures, Dr. Forson disclosed that the Procurement Act has been amended to require prior commitment authorisation from the Ministry of Finance before any government contract is approved.
“This measure is critical for enhancing spending controls and ensuring full compliance with the Public Financial Management (PFM) Act,” he stressed.
Further fiscal reforms include amendments to the Public Financial Management Act, 2016 (Act 921), introducing two key fiscal rules – a debt rule and a primary balance rule.
The debt rule targets a reduction in Ghana’s debt-to-GDP ratio to 45% by 2035, while the operational rule mandates the achievement of a primary surplus of not less than 1.5% of GDP annually on a commitment basis.
To monitor compliance, the Finance Minister announced the establishment of an Independent Fiscal Council tasked with overseeing adherence to the fiscal rules and enhancing the credibility of fiscal policy.
New Compliance Mechanisms and Transparency Tools
To institutionalise fiscal discipline, the Ministry of Finance has created a new Compliance Division, led by a newly appointed Director, to track the fiscal performance of Ministries, Departments, and Agencies (MDAs).
In addition, a Public Financial Management Commitment Control Compliance League Table will soon be introduced to publicly rank MDAs based on their compliance with spending limits and financial controls.
“These actions underscore our commitment to resolving legacy financial obligations, enforcing spending discipline, and creating a transparent and credible financial management system,” Dr. Forson assured, adding that the reforms are designed to support long-term economic growth and stability.
