Finance Minister Dr Cassiel Ato Forson has outlined a plan to buyers that goals to deal with the nation’s massive accumulation of presidency payables in 2024 whereas reinforcing fiscal self-discipline and transparency in public monetary administration.
Talking at a gathering with buyers in Washington, D.C., USA, Dr Forson highlighted key reforms and coverage actions underway to revive confidence in Ghana’s fiscal framework and stabilise its macroeconomic outlook.
Auditing Payables & Commitments
On the coronary heart of the plan is a government-commissioned audit of all excellent payables and commitments. The Ministry of Finance has engaged the Auditor Normal, alongside two unbiased audit companies, for an intensive eight-week overview.
“The target is to confirm the legitimacy and accuracy of those claims,” the Minister defined. “The findings will information the implementation of corrective actions to resolve any irregularities and enhance accountability going ahead.”
Strengthening Dedication Controls
To stop the recurrence of unapproved expenditures, the federal government has amended the Procurement Act.
Efficient April 3, 2025, no authorities contract can be authorized with out prior dedication authorization from the Ministry of Finance.
“This measure is vital for enhancing spending controls and making certain full compliance with the Public Monetary Administration (PFM) Act,” the Minister stated.
PFM Act Modification and Fiscal Guidelines
The federal government has additionally amended the Public Monetary Administration Act, 2016 (Act 921), to introduce two main fiscal guidelines. The primary is a debt rule that targets a discount within the debt-to-GDP ratio to 45% by 2035.
The second is an operational rule mandating an annual major surplus of no less than 1.5% of GDP on a dedication foundation.
An Unbiased Fiscal Council has been established to watch adherence to those guidelines and to boost transparency and credibility in public finance.
Imposing Compliance and Oversight
In an additional transfer to institutionalize fiscal self-discipline, the Ministry has operationalized a brand new Compliance Division tasked with monitoring how Ministries, Departments, and Companies (MDAs) adhere to fiscal commitments. A newly appointed Director is now main the division’s efforts.
Moreover, the federal government will introduce a Public Monetary Administration Dedication Management Compliance League Desk to publicly rank MDAs based mostly on their expenditure management efficiency.
Restoring Confidence
“These actions underscore our dedication to resolving legacy monetary obligations, imposing spending self-discipline, and making a clear and credible monetary administration system,” the Finance Minister stated, assuring buyers of the federal government’s resolve to take care of stability and help long-term progress.
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