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President Mahama’s nominee for finance minister, Dr. Cassiel Ato Forson, has committed to reducing Ghana’s inflation to single digits through stringent fiscal measures, focusing on controlling government expenditure.
During his vetting on January 13, Dr. Forson outlined a series of strategies aimed at stabilising the country’s economy, including cutting unnecessary government spending and reducing reliance on borrowing. One of his top priorities is to bring inflation down to a target range of 8%, with a margin of plus or minus two percentage points.
“I believe if we introduce strong measures, particularly from the expenditure side, we will be able to bring inflation down to 8% plus or minus two,” Dr. Forson stated.
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He emphasised that by reducing government expenditure, the country would be able to reopen the domestic bond market and shift away from an over-reliance on the treasury bill market.
Dr. Forson stressed the importance of fiscal discipline, saying that without proper financing, the government must look inward and focus on reducing wasteful spending. “Let’s deal with expenditure; let’s cut expenditure; let us not pretend that there is money there for us. Just like it has been done in other countries, we can do it here,” he said.
One of his key proposals is to address wasteful spending within the government. “We need to cut the waste, and I will lead the process to ensure that we stay within a budget we can manage,” he added, calling on Parliament members to collaborate in reducing unnecessary costs.
Ato Forson also emphasised the importance of working with Ghana’s development partners, including the African Development Bank, the World Bank, the European Union, and other bilateral agencies.
He noted that if necessary, the government would work with the International Monetary Fund (IMF) to access cheaper sources of financing to support government expenditure and drive inclusive economic growth.
“If there is the need, we will work with our development partners to raise cheaper sources of financing to finance government expenditure, particularly those that promote proper and inclusive growth,” Dr. Forson concluded.
