Finance Minister Dr. Cassiel Ato Forson says Ghana’s fiscal policy choices in the post-2024 era will be informed by hard lessons from the 2024 Annual Budget Performance Report (BPR), as the government works to reset the economy and deliver what they term “the Ghana we want.”
Presenting the highlights of the 2024 Consolidated MDAs Annual BPR, Dr. Forson stressed the need for a national culture that sustains fiscal discipline, a principle that will guide future economic decisions.
“We must, and we will, build a new culture that promotes and sustains fiscal discipline,” he said.
Reflecting on the period before 2024, the Minister described the global and national economy as having suffered “ignoble deterioration,” citing surging inflation, rapid currency depreciation, high interest rates, and unaffordable credit.
“In Ghana, we saw the most ignoble deterioration of the economy and broader societal well-being,” he said. “Inflation galloped, the exchange rate depreciated sharply and remained volatile. Interest rates rose and credit became simply unaffordable.”
These conditions, Dr. Forson said, forced Ghana to seek support from the International Monetary Fund (IMF) through the Extended Credit Facility (ECF), following an expansive debt restructuring exercise with severe consequences.
Acknowledging the unique context of 2024 as an election year, the Minister said the government had set macroeconomic targets aimed at restoring fiscal discipline and debt sustainability. Despite some progress under the IMF programme, the country continued to face economic fragility.
“2024 recorded significant fiscal slippages,” he stated. “The Primary deficit worsened, and the year ended with the accumulation of huge central government arrears amounting to GH¢67.5 billion, representing 5.7% of GDP.”
Dr. Forson noted that the fiscal discipline lessons from this difficult economic period were evident for all to see. “Fiscal slippages are costly and far-reaching,” he warned.
He added that these experiences justify the relevance of the Annual Budget Performance Report, which is mandated by the Public Financial Management Act, 2016 (Act 921), as amended.
“Beyond meeting the requirements of the PFM Act, the BPR enables us to assess the performance and impact of our policy choices and take corrective measures where necessary,” he explained.
In line with Section 27 of the PFM Act, stakeholders will also receive updates on actions taken to implement recommendations from Parliament regarding the Auditor-General’s report, as well as updates on multi-year expenditures undertaken in 2024.
Dr. Forson emphasized that the preparation of the BPR is a collaborative national effort and expressed gratitude to all Ministries, Departments, and Agencies (MDAs) who contributed to the report. He also acknowledged the professionalism and dedication of the staff at the Ministry of Finance.
“As a Ministry, we will stand ready to provide clarification and respond to any related queries through the established channels, including the Right to Information Platform,” he said.
