Latest news with #Forson
Zawya
25-04-2025
- Business
- Zawya
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.
Zawya
08-04-2025
- Business
- Zawya
Ghana: No Contract Approvals Without Commencement Authorisation
In a move to enforce fiscal discipline and eliminate financial recklessness in public administration, Minister for Finance, Dr. Cassiel Ato Forson, has announced that no government contract will be approved without prior commencement authorisation from the Ministry of Finance, effective April 3, 2025. The directive was delivered at a recent meeting with Chief Directors and senior officials from various Ministries, Departments, and Agencies (MDAs), where Dr. Forson made it clear that the days of unchecked contract approvals are over. 'You cannot award contracts without the express approval of the Ministry of Finance,' he stated emphatically. 'No commencement certificate, no procurement.' The Minister explained that every government contract must now obtain commencement authorisation. Dr. Forson underscored that this is not just an administrative change but a legal mandate under the Amended Public Financial Management Act, 2025. He warned that any breach of this directive will attract serious consequences. 'The Ministry of Finance will no longer take the fall for fiscal indiscipline,' he said. The Minister called on all public officials to uphold the highest standards of integrity and patriotism in the management of public funds. 'We are among the privileged few. We cannot continue to subject our people to hardship through poor governance and financial mismanagement,' Dr. Forson stated. He emphasized that Ghana's path to fiscal responsibility begins with strict adherence to budget implementation processes, transparency, and accountability across all levels of government. Distributed by APO Group on behalf of Ministry of Finance - Republic of Ghana.
Zawya
24-03-2025
- Business
- Zawya
Ghana Committed to International Monetary Fund (IMF) Programme, Advancing Debt Restructuring
Ghana's Finance Minister, Dr. Cassiel Ato Forson, has reaffirmed the government's commitment to fulfilling the conditions of the International Monetary Fund (IMF) programme and ensuring the successful completion of the country's debt restructuring efforts. Speaking during a meeting with the German Ambassador to Ghana, H.E. Daniel Krull, Dr. Forson acknowledged that Ghana had previously missed some structural benchmarks under the IMF programme. However, he assured that his administration is actively addressing these gaps. 'We have taken concrete steps to correct the structural benchmarks that were missed under the previous government, and the results will soon be evident,' he stated. On Ghana's ongoing debt restructuring, Dr. Forson emphasized that the country has made significant progress and is now focused on finalizing individual bilateral agreements with its external creditors. He appealed for Germany's support in expediting the process, noting that securing these agreements is crucial for Ghana's economic recovery. In response, Ambassador Krull commended the Ghanaian government's efforts and described the engagement as insightful. He also expressed Germany's readiness to proceed with the signing of the necessary bilateral agreements to support Ghana's financial stability. Ghana's collaboration with the IMF is part of broader efforts to restore macroeconomic stability and ensure sustainable growth. The government remains optimistic that ongoing reforms and international support will help position the country on a stronger economic path. Distributed by APO Group on behalf of Ministry of Finance - Republic of Ghana.
Reuters
11-03-2025
- Business
- Reuters
Ghana faces significant external debt service, finance minister says
ACCRA, March 11 (Reuters) - Ghana's Finance Minister Cassiel Ato Baah Forson said on Tuesday that the West African nation faced significant external debt service costs over the next four years. "The next four years we'll be made to call upon to pay $8.7 billion representing 10.9% of GDP, with heavy concentration in the year 2027 and 2028," Forson told parliament in his first budget speech. He that Ghana will have to pay $2.5 billion in 2027 and $2.4 billion in 2028. Advertisement · Scroll to continue "In spite of all these upcoming domestic and external debt service obligations, no buffers were built to cushion this unprecedented debt service burden," Forson said. The West African nation is emerging from its deepest economic crisis in a generation resulting from the COVID-19 pandemic, the war in Ukraine, higher global interest rates and years of excessive borrowing. President John Dramani Mahama, who took office in January, has vowed to boost the economy and create jobs. He faces the fallouts of a cost-of-living crisis, an ongoing bailout from the International Monetary Fund and a sovereign debt default in the cocoa and gold-producing nation.
BBC News
27-02-2025
- Business
- BBC News
Clackmannanshire's council tax to rise by 13%
Councillors in Clackmannanshire have voted to increase council tax by 13% following the local authority's annual budget means the average Band D property will pay £1594.38 a year, up from £ motion was passed by 11 votes to councillors in Stirling voted for an 8.8% increase, while Perth and Kinross will see its council tax rise by 9.5% Clackmannanshire Council leader and SNP councillor Ellon Forson said she took "no joy" in the budget being passed with the Forson told the meeting: "I need to be able to stand in front of people and defend the budget."So I therefore need to be able to believe in what it's going to deliver and know that it's going to have the impact that it needs to have, moving forward."And that's really the only reason we have set council tax at 13%."Clackmannanshire is the smallest council in mainland Scotland by population, with no single party having overall council's estimated grant funding for this financial year is £139.009m, an increase of £ local authority said that despite this, increased cost pressures along with rising demand for services and a council tax freeze last year, meant the 13% increase in council tax was Council's 8.8% increase means an average band D property will result in an annual bill of £1,611.87, up from £1, minority Labour administration's budget was approved by elected members 12 votes to 11 with one Council leader Gerry McGarvey said: "I would like thank everyone who took part in the Big Conversation surveys and for providing such constructive and considered feedback. "Be in no doubt – your views have shaped the decisions we have made today."Councillors in Angus and Dundee will also set their budgets on Thursday. Councillors in Perth and Kinross voted for the 9.5% increase in council tax on an average band D property, the rise will mean an annual bill of £1,537.04, up from £1, SNP administration's budget was approved by elected members by 26 votes to 13 with one increases have also been agreed of 9.5% for 2026/27 and 6% for 2027/ leader Grant Laing said: "For a number of years this council has taken what have been often difficult decisions to agree budget reductions to balance the increasing costs of providing core services and growing levels of need, all while either maintaining a national council tax freeze or keeping the increase as low as possible. "This approach is simply not sustainable."
