Ghana’s current economic landscape is characterized by a commitment to fiscal discipline and adherence to the International Monetary Fund (IMF) program. Finance Minister Dr. Cassiel Ato Forson has unequivocally stated the government’s unwavering resolve to fully implement the existing IMF program, dismissing any possibility of renegotiation or extension. This unwavering commitment is rooted in the belief that the program offers the most viable path towards restoring macroeconomic stability and fostering sustainable economic growth. The government views the program as a crucial instrument for addressing existing economic challenges and laying a solid foundation for future prosperity.
The Finance Minister acknowledged previous slip-ups in meeting certain structural benchmarks and quantitative targets before the current administration assumed office. However, he emphasized that the current government is firmly dedicated to achieving the overarching objectives of the IMF program. This commitment reflects a determination to learn from past shortcomings and to prioritize the successful implementation of the program’s crucial elements. The government recognizes the importance of adhering to the program’s guidelines to unlock its full potential for economic recovery and growth.
To demonstrate this commitment, Dr. Forson outlined a comprehensive set of measures aimed at strengthening fiscal control and promoting sustainable financial practices. These measures are designed to enhance expenditure controls, eliminate the accumulation of arrears, bolster budget credibility, and ensure fiscal and debt sustainability. The implementation of these measures reflects a multi-pronged approach to address fiscal challenges and promote sound economic management. By focusing on these key areas, the government aims to create a more stable and resilient economic environment.
One key measure is the commissioning of a comprehensive audit of payables and commitments. This audit, conducted by the Auditor-General in collaboration with two international audit firms, aims to verify the legitimacy and value of these financial obligations and provide recommendations for corrective measures. The involvement of international audit firms underscores the government’s commitment to transparency and adherence to international best practices. The eight-week timeframe for the audit demonstrates the urgency with which the government is approaching this matter.
Furthermore, the government has taken legislative steps to enhance procurement processes. An amendment to the Procurement Act now mandates that the Minister for Finance issue a commitment authorization, such as a commencement certificate, before any central government procurement can proceed under the Authority or the Central Tender Review Committee. This measure is intended to strengthen oversight of public procurement and prevent unauthorized spending. By ensuring that all procurements are properly authorized, the government aims to minimize financial irregularities and promote greater accountability.
In addition to these measures, the government plans to launch a Public Financial Management (PFM) Commitment Control Compliance League Table. This initiative will track and publicly disclose the compliance levels of Ministries, Departments, and Agencies (MDAs) with the PFM Act. This transparency measure aims to foster accountability and encourage adherence to established financial management practices. By publicly highlighting the compliance levels of various MDAs, the government seeks to promote a culture of fiscal responsibility and good governance. This initiative will also provide valuable insights into the effectiveness of the PFM Act and identify areas for potential improvement. The government’s comprehensive approach to fiscal management reflects its unwavering commitment to restoring macroeconomic stability and fostering sustainable economic growth.
