Finance Minister Ken Ofori-Atta has announced a significant 20% reduction in planned government expenditure for the 2022 fiscal year to ensure the nation’s financial commitments align strictly with actual revenue inflows.
Although Parliament had previously authorized a total spending package of ¢135.6 billion, the Ministry of Finance has invoked the Public Financial Management Act to implement quarterly expenditure ceilings across all state entities.
This move shifts the focus of Ghana’s fiscal consolidation agenda toward aggressive expenditure management, ensuring that projected funds are only utilized once they are physically collected.
By adopting this cautious approach, the government aims to mitigate the lingering economic disruptions caused by the global pandemic and transition toward a more sustainable model of internal revenue generation and fiscal discipline.