Plans to present a fiscal responsibility rule to Parliament, which would establish a debt cap that the Ministry of Finance is not allowed to go beyond, have been disclosed by Finance Minister Dr. Cassiel Ato Forson.
He said doing this would assist maintain long-term financial stability and discourage excessive borrowing.
The Minister declared significant investment reductions and a reset of spending on goods and services to 2023 levels as part of this pledge. Additionally, the government is aiming for a 1.5% primary surplus, which is an essential first step in stabilizing the economy.
This was disclosed by Dr. Cassiel Ato Forson during his remarks at a meeting with more than 22 bank managing directors.
Dr. Johnson Asiama, the governor of the Bank of Ghana, and his deputy were present at the meeting. As a result, the BoG governor praised the Minister’s promises, calling them a good sign before this week’s inaugural meeting of his Monetary Policy Committee (MPC).
Additionally, this will make the capital markets stronger.
Dr. Forson’s message:
“Ghana is committed to responsible fiscal management. The government is focused on stability, collaboration, and prudent financial decisions to avoid repeating past economic challenges”.
“We need each other,” he told the bank CEOs. “We want you as partners in our development. We will not be reckless.”
Earlier, Professional services firm, Deloitte said that despite the positive signs from 2024, Ghana’s economy will require structural adjustments to put the country on the path to sustainable economic growth and debt levels.
“The expected VAT reform would be much welcomed by the business community, and we look forward for this to be initiated and completed in this calendar year.
“The business community is also looking forward to “realignment” of import duties, especially on production inputs, to enable it grow and provide the necessary jobs in the economy,” Deloitte said in its analysis of the 2025 budget statement.
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