Ato Forson announces structural reforms to tackle fiscal indiscipline

The Ministry of Finance has unveiled a series of structural reforms aimed at restoring fiscal discipline, increasing transparency, and reinforcing debt sustainability, as part of Ghana’s ongoing IMF-supported recovery programme.

Speaking at the MOF-BOG-IMF joint press conference on April 15, Finance Minister Dr. Cassiel Ato Forson outlined measures being taken to reverse prior breaches of structural and quantitative targets.

“We have worked tirelessly to reverse the situation and, in some cases, fast-tracked the implementation of certain structural reforms ahead of schedule,” he remarked.

Among the most significant reforms is the commissioning of the Auditor-General, supported by two international firms, to audit and validate the legitimacy of the 2024 arrears.

The results, expected within eight weeks, will guide corrective action and promote accountability.

Further reforms include amendments to the Public Financial Management Act and the Procurement Act to introduce fiscal rules and enhance control over public expenditure.

A newly launched Compliance Desk will monitor adherence across MDAs, backed by a soon-to-be-published compliance league table.

“These bold steps are not just technical fixes—they are about restoring trust in public financial management,” Dr. Forson added, emphasising the importance of long-term credibility and sustainability in Ghana’s economic governance.

The Finance Minister said despite recent progress, Ghana’s energy sector continues to pose a significant fiscal risk

However, targeted reforms are underway to stem losses and improve financial transparency in the sector.

Dr. Ato Forson, addressing journalists at the joint press briefing, noted, “Fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall.”

Key among these reforms is the operationalisation of the single account mechanism and the strict implementation of the Cash Waterfall Mechanism, which ensures fair and regular payments to Independent Power Producers (IPPs) in accordance with agreed guidelines.

These interventions are expected to improve liquidity flow and mitigate the build-up of new arrears in the energy sector, a chronic issue that has undermined fiscal balance over the years.

The Finance Minister reiterated his commitment to transparent energy sector governance, noting that addressing inefficiencies in this area is vital for overall macroeconomic recovery and the credibility of the ongoing IMF programme.

He reaffirmed the commitment of the administration of President John Mahama to implementing the IMF-supported economic programme, despite the challenges inherited at the start of its term in January 2025.

Dr. Cassiel Ato Forson declared: “We remain fully committed to the implementation of the programme and will do all it takes to ensure that its objectives remain on track.”

Acknowledging the hardships being faced by Ghanaians, Dr. Forson expressed gratitude to citizens for their patience and resilience.

He promised that government efforts would continue to focus on inclusive growth, job creation, and protecting the poor and vulnerable.

The Finance Minister pledged to personally lead the charge to meet all commitments under the IMF arrangement, reinforcing the administration’s credibility with both domestic and international partners.

“This is about building the Ghana We Want—together,” he affirmed.

“We fully recognise the sacrifices made by every Ghanaian as we work together to restore macroeconomic stability and secure a brighter future for our nation,” Dr Forson assured.

The post Ato Forson announces structural reforms to tackle fiscal indiscipline first appeared on 3News.

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