President Mahama’s nominee for Finance Minister, Dr. Cassiel Ato Forson, has committed to reducing Ghana's inflation to single digits through targeted fiscal reforms, particularly by controlling government expenditure. During his vetting on January 13, Dr. Forson outlined a series of proposals to stabilize the economy, with a focus on cutting unnecessary spending and reducing the country’s reliance on borrowing.
One of his key objectives is to bring inflation down to a target range of 8%, stating that implementing strong measures, particularly on the expenditure side, would help achieve this. He also emphasized the importance of reopening the domestic bond market to reduce Ghana’s dependence on the treasury bill market.
“I believe that by introducing robust fiscal measures, especially in controlling expenditure, we can bring inflation down to around 8%, plus or minus two. This will also allow us to reopen the domestic bond market and reduce our reliance on treasury bills,” Dr. Forson explained.
In addition to tackling inflation, Dr. Forson promised to restore confidence in the economy through fiscal discipline. He suggested that when financing is scarce, the government must focus on reducing spending rather than relying on excessive borrowing.
“When faced with limited financing, we need to look within. We need to cut expenditure and avoid the illusion of available funds. Like in other places, we can achieve this here as well,” he added.
Dr. Forson also stressed the need to curb wasteful spending within government operations. He proposed a close examination of government expenditures, aiming to cut waste and stay within manageable fiscal limits.
“My approach will be to focus on the expenditure side of the budget. We cannot continue borrowing endlessly. It's time to cut waste, and I will lead this process with the support of the honorable members, ensuring that we operate within our fiscal constraints,” he stated.
To further address the nation’s fiscal challenges, Dr. Forson highlighted the importance of collaborating with international development partners, including the African Development Bank, the World Bank, the European Union, and the International Monetary Fund (IMF), to secure more affordable financing options.
“If necessary, we will work with our development partners to explore cheaper sources of financing for government expenditure, particularly for projects that will foster sustainable and inclusive growth,” he concluded.
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