Finance Minister Outlines Measures to Tackle Ghana's Large Payable Build-up in 2024
Finance Minister Dr. Cassiel Ato Forson has outlined a comprehensive plan to investors aimed at addressing the country's large accumulation of government payables in 2024, while reinforcing fiscal discipline and transparency across public financial management.
Speaking at meeting with investors in Washington DC, USA, Dr. Forson highlighted key reforms and policy actions underway to restore confidence in Ghana's fiscal framework and stabilize its macroeconomic outlook.
Auditing Payables&Commitments
At the heart of the plan is a government-commissioned audit of all outstanding payables and commitments. The Ministry of Finance has engaged the Auditor General, alongside two independent audit firms, for an intensive eight-week review.
'The objective is to verify the legitimacy and accuracy of these claims,' the Minister explained. 'The findings will guide the implementation of corrective actions to resolve any irregularities and improve accountability going forward.'
Strengthening Commitment Controls
To prevent the recurrence of unapproved expenditures, the government has amended the Procurement Act. Effective April 3, 2025, no government contract will be approved without prior commitment authorization from the Ministry of Finance.
'This measure is critical for enhancing spending controls and ensuring full compliance with the Public Financial Management (PFM) Act,' the Minister said.
PFM Act Amendment and Fiscal Rules
The government has also amended the Public Financial Management Act, 2016 (Act 921), to introduce two major fiscal rules. The first is a debt rule that targets a reduction in the debt-to-GDP ratio to 45% by 2035. The second is an operational rule mandating an annual primary surplus of at least 1.5% of GDP on a commitment basis.
An Independent Fiscal Council has been established to monitor adherence to these rules and to enhance transparency and credibility in public finance.
Enforcing Compliance and Oversight
In a further move to institutionalize fiscal discipline, the Ministry has operationalized a new Compliance Division tasked with monitoring how Ministries, Departments, and Agencies (MDAs) adhere to fiscal commitments. A newly appointed Director is now leading the division's efforts.
Additionally, the government will introduce a Public Financial Management Commitment Control Compliance League Table to publicly rank MDAs based on their expenditure control performance.
Restoring Confidence
'These actions underscore our commitment to resolving legacy financial obligations, enforcing spending discipline, and creating a transparent and credible financial management system,' the Finance Minister said, assuring investors of the government's resolve to maintain stability and support long-term growth.
Distributed by APO Group on behalf of Ministry of Finance - Republic of Ghana.
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