Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has unveiled a comprehensive strategy for economic recovery, drawing lessons from the nation’s recent fiscal challenges, as detailed in the 2024 Consolidated MDAs Annual Budget Performance Report (BPR). The BPR serves as a crucial roadmap for a post-2024 economic reset, emphasizing fiscal responsibility, transparency, and disciplined management. Dr. Forson underscores the report’s significance in shaping future policy decisions, aiming to cultivate a new culture of fiscal prudence and stability.
The minister’s statement accompanying the BPR paints a stark picture of Ghana’s recent economic landscape. He characterized the period leading up to 2024 as a period of unprecedented economic turbulence, marked by soaring inflation, a volatile exchange rate, and prohibitive interest rates. These factors crippled access to credit and necessitated an intervention from the International Monetary Fund (IMF) through an Extended Credit Facility (ECF) program. This program followed a comprehensive domestic and external debt restructuring exercise, which had far-reaching consequences for the Ghanaian economy.
The previous administration, Dr. Forson notes, had committed to restoring macroeconomic stability through debt and fiscal realignment. However, despite some progress achieved under the IMF program, the economy remained vulnerable. The 2024 fiscal year witnessed significant slippages, with a worsening primary deficit and a substantial accumulation of central government arrears, amounting to GH¢67.5 billion, equivalent to 5.7% of GDP. This stark reality underscores the urgent need for strict adherence to the Public Financial Management Act, 2016 (Act 921), as amended, and highlights the critical importance of the Annual Budget Performance Report.
The BPR, according to Dr. Forson, transcends its statutory obligations. It provides a vital platform for evaluating the real-world impact of government policies and identifying areas requiring adjustments. The report facilitates an assessment of policy effectiveness and enables corrective measures where necessary. Additionally, it ensures compliance with Section 27 of the PFM Act, requiring updates to stakeholders on actions taken to implement parliamentary recommendations regarding the Auditor-General’s report, as well as updates on multi-year expenditure undertaken in 2024. This commitment to transparency and accountability is central to the government’s strategy for restoring economic stability.
The development of the BPR was a collaborative effort, involving contributions from various Ministries, Departments, and Agencies (MDAs). Dr. Forson expressed his gratitude to these stakeholders for their invaluable input and validation of the information contained within the report. He also commended the staff of the Ministry of Finance for their professionalism and dedication in coordinating the preparation of the BPR. The Ministry remains committed to providing clarification and responding to any queries related to the report through established channels, including the Right to Information Platform, furthering the government’s commitment to open communication and public engagement.
In closing, Dr. Forson issued a powerful call for unity and shared responsibility in forging a new economic path for Ghana. He emphasized the present opportunity to rewrite the nation’s recent economic history in a positive light. The minister urged collective action to build the desired future for Ghana, reiterating the government’s commitment to fulfilling this promise and duty. The BPR, therefore, serves not merely as a record of past performance but as a blueprint for future action, guiding Ghana towards a more stable and prosperous economic future. The emphasis on fiscal discipline, transparency, and collaboration signifies a determined effort to learn from past mistakes and build a more resilient and sustainable economy.
