In a strategic push to reinforce Ghana’s IMF-supported recovery program, the Ministry of Finance has introduced a comprehensive set of structural reforms designed to enhance transparency and curb public overspending.
Finance Minister Dr. Cassiel Ato Forson announced these measures during a joint press briefing with the Bank of Ghana and the IMF, highlighting the government’s commitment to reversing previous breaches of quantitative targets and restoring long-term economic credibility.
Validation of Arrears and Legal Overhauls
A central component of this reform package is a rigorous audit of the 2024 arrears. The Auditor-General, with technical support from two international audit firms, has been commissioned to validate the legitimacy of these debts. This audit is expected to be completed within eight weeks, providing a factual basis for debt settlement and ensuring that only verified obligations are honored.
Parallel to this audit, the government is proposing critical legislative amendments to the Public Financial Management Act and the Procurement Act. These changes are intended to:
- Introduce Fiscal Rules: Establish clear legal boundaries for government borrowing and spending.
- Tighten Expenditure Control: Close loopholes that previously allowed for unauthorized budgetary commitments.
To ensure these reforms are implemented effectively at the ground level, a new Compliance Desk has been established. This unit will actively monitor how Ministries, Departments, and Agencies (MDAs) adhere to new financial regulations.
To incentivize performance, the Ministry will publish a “Compliance League Table,” a public ranking that will name and shame agencies failing to meet fiscal transparency standards while highlighting those that maintain disciplined books.
Dr. Forson emphasized that these measures move beyond “technical fixes,” aiming instead to build a culture of accountability that ensures the sustainability of Ghana’s economic governance well beyond the current IMF program.
