The Government Statistician, Dr. Alhassan Iddrisu, has underscored the importance of fiscal consolidation in sustaining Ghana’s progress in reducing inflation, which hit 8.0% in October 2025, the lowest in four years.
According to Dr. Iddrisu, Ghana’s success in bringing inflation down from 23.8 percent in December 2024 to single digits was not accidental but a result of disciplined fiscal management, improved revenue collection, and rationalized public spending.
“Fiscal consolidation means the government is collecting more revenue while rationalizing expenditure to reduce wasteful spending. This ensures that borrowing is minimized and fiscal stability is maintained,” he said.
The Government Statistician revealed that Ghana’s primary balance on commitment basis stood at a positive 1.1 percent of GDP, indicating that government revenues exceeded non-interest expenditures, a sign of solid fiscal health.
He highlighted recent reforms such as the Fiscal Responsibility Act, which mandates a minimum positive primary balance of 1.5 percent of GDP, and the upcoming establishment of an Independent Fiscal Council to oversee government spending and accountability.
“These institutional frameworks ensure that fiscal discipline becomes a permanent feature of Ghana’s economic governance,” Dr. Iddrisu noted.
The GSS report credits other factors, like improved food production, falling global commodity prices, and effective monetary policy by the Bank of Ghana, for supporting the disinflation process.
However, Dr. Iddrisu cautioned that any fiscal slippage could easily reverse these gains.
“Maintaining fiscal discipline is non-negotiable. Any deviation from this path can undo the progress made so far,” he warned.
The GSS believes that as long as the government keeps to its expenditure plan and strengthens domestic revenue mobilization, inflation will remain stable through 2026.
The agency commended collaboration between fiscal and monetary authorities, calling it “vital for sustained macroeconomic stability.”
