Finance Minister lists 5 Key measures implemented to restore trust in public finances

Ghana's Finance Minister, Cassiel Ato Forson, PhD, announced new measures to restore trust in public finances. These steps aim to ensure credibility in budgeting and support economic growth.

The Finance Minister outlined several key actions:

First, the Auditor-General and oversight bodies will audit all outstanding payables. This audit will verify their legitimacy and suggest corrective actions. It is expected to be completed in eight weeks.

Second, the Procurement Act will be amended. No central government procurement can occur without prior approval from the Finance Minister. This change aims to enhance discipline and transparency in public spending.

Third, amendments to the Public Financial Management Act are being introduced. A debt rule will limit the debt-to-GDP ratio to 45 percent by 2035. Additionally, a primary surplus of at least 1.5 percent of GDP must be maintained annually. An Independent Fiscal Council will also be established to oversee these fiscal rules.

Fourth, a Compliance Desk has been set up at the Ministry of Finance. This desk will monitor how Ministries, Departments, and Agencies (MDAs) comply with fiscal commitments under the PFM Act.

Lastly, a Public Financial Management Commitment Control Compliance League Table will soon be published. This table will rank MDAs based on their compliance with financial controls.

The Finance Minister emphasized that these measures are not just for meeting IMF targets. They reflect the government's urgency to reset Ghana's economy.