The Ministry of Finance has outlined a comprehensive strategy to address Ghana’s growing stock of government payables and improve fiscal discipline across the public sector.
The plan, presented by Finance Minister Dr. Cassiel Ato Forson during an investor engagement, focuses on four key areas; auditing outstanding commitments, tightening commitment controls, introducing fiscal rules, and strengthening compliance monitoring.
Independent Audit of Payables
An eight-week audit of all outstanding government payables and commitments is underway. The exercise is being conducted by the Auditor General in collaboration with two independent audit firms. The objective is to verify the accuracy of reported obligations and recommend corrective measures where irregularities are identified.
Reinforced Commitment Control System
To prevent the build-up of new arrears, the Procurement Act has been amended. As of April 3, 2025, all government contracts must receive prior commitment authorization from the Ministry of Finance before approval. This measure aligns with the Public Financial Management regulations and is expected to improve control over expenditure commitments.
New Fiscal Rules to Support Stability
The Public Financial Management Act (2016, Act 921) has been amended to include new fiscal targets. A debt rule aims to reduce the debt-to-GDP ratio to 45 percent by 2035. An operational rule requires an annual primary surplus of at least 1.5 percent of GDP on a commitment basis. An Independent Fiscal Council will oversee compliance with these rules and promote transparency in public finance management.
Enhanced Monitoring and Accountability
A Compliance Division within the Ministry of Finance is now fully operational. It is responsible for monitoring the adherence of Ministries, Departments, and Agencies (MDAs) to fiscal commitments. The Ministry also plans to publish a Compliance League Table to assess and rank MDAs based on their expenditure discipline and alignment with fiscal rules.
The reform measures will intend to improve governance, strengthen credibility, and support long-term macroeconomic stability.
