Finance Ministry has unveiled a comprehensive strategy aimed at tackling the country’s significant backlog of unpaid government bills, while reinforcing transparency and discipline in the management of public finances.

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During a session with investors in Washington, D.C., Finance Minister Dr Cassiel Ato Forson outlined a series of policy measures and reforms designed to restore confidence in Ghana’s economic management and strengthen its fiscal framework.

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A central part of the initiative involves an extensive audit of all outstanding government payables and commitments. The Ministry of Finance has partnered with the Auditor General and two independent audit firms to conduct a rigorous eight-week review of the liabilities.

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“The objective is to verify the legitimacy and accuracy of these claims,” the Minister explained. “The findings will guide the implementation of corrective actions to resolve any irregularities and improve accountability going forward.”

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To curb unapproved commitments, the government has revised the Procurement Act. As of April 3, 2025, all public contracts must receive prior commitment clearance from the Finance Ministry before approval.

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“This measure is critical for enhancing spending controls and ensuring full compliance with the Public Financial Management (PFM) Act,” Dr Forson noted.

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In a bid to anchor long-term fiscal sustainability, the Public Financial Management Act, 2016 (Act 921), has been amended to include two key fiscal rules. The first sets a debt ceiling, targeting a reduction of Ghana’s debt-to-GDP ratio to 45% by 2035.

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The second rule mandates that the government maintains an annual primary surplus of no less than 1.5% of GDP, measured on a commitment basis.

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To support these reforms, an Independent Fiscal Council has been established to monitor compliance and improve the transparency of fiscal operations.

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A new Compliance Division has also been activated within the Ministry to ensure government agencies observe fiscal protocols. The division, headed by a newly appointed Director, will oversee adherence to spending regulations across all Ministries, Departments, and Agencies (MDAs).

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In a push for public accountability, the Ministry will launch a Public Financial Management Commitment Control Compliance League Table, ranking MDAs based on their fiscal discipline and expenditure compliance.

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