Finance Minister-nominee Dr. Cassiel Ato Forson has expressed confidence that Ghana's inflation can be reduced to single digits through the implementation of robust fiscal policies, focusing primarily on expenditure control and financial discipline.Speaking during his vetting before Parliament’s Appointments Committee on January 13, Dr.

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Forson outlined his plan to stabilize the economy, emphasizing the need to curb excessive government spending while reducing the country's dependence on borrowing.

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“If we introduce strong measures, particularly on the expenditure side, we will be able to reduce inflation to 8% plus or minus two,” he asserted, adding that achieving this target would pave the way for reopening Ghana’s domestic bond market and reduce reliance on treasury bills.

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The Ghana Statistical Service (GSS) has previously called for a broader, cross-sectoral approach to tackling inflation, stressing that the burden should not rest solely on the Bank of Ghana (BoG). The GSS urged the inclusion of all government ministries in efforts to manage inflation and stabilize the economy.Historically, the BoG has used monetary tools, such as interest rate adjustments, to control inflation.

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In 2022, the central bank raised interest rates significantly as part of its inflation management strategy. However, by September 2024, the policy rate was reduced to 27%, following a previous nine-month hold at 29%, as inflationary pressures persisted.Despite these interventions, the government's end-of-year inflation target of 15% was missed, with the GSS reporting inflation at 23.8% in December 2024, up from 23.

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0% in November, driven largely by rising food prices.Dr. Forson emphasized the importance of fiscal discipline in restoring economic stability and rebuilding investor confidence. He stressed that the government must operate within its available resources, especially in the face of limited financing options.

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“Let’s deal with expenditure, let’s cut expenditure, and let us not pretend that there is money available,” he urged, calling for prudent financial management as a pathway to stability.The minister-nominee further committed to eliminating wasteful spending within the government, stressing that excessive borrowing should not be the default solution.

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“It is time for us to cut the waste, and I will lead the process,” he declared, urging collaboration from Parliament and other stakeholders to ensure the country stays within its financial means.Dr. Forson concluded by reiterating the need for streamlined government spending and responsible financial practices, warning that unchecked borrowing would only exacerbate Ghana's fiscal challenges.

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