Finance Minister outlines 7 key areas to fix economic challenges

Dr. Cassiel Ato Baah Forson, the Minister of Finance, unveiled a comprehensive strategy aimed at resetting Ghana’s economy through rigorous structural reforms.
The Minister emphasized the urgent need for fiscal discipline and sustainable growth, describing the current macroeconomic situation as “very fragile.”
The announcement was made during the inaugural day of the National Economic Dialogue held at the Accra International Conference.

Key focus areas for economic recovery
In a detailed presentation, the Minister outlined seven key focus areas designed to address the nation’s economic challenges. These included enhanced domestic revenue mobilization, which would involve strategies to broaden the tax base and improve collection efficiency, ensuring a balance between equity, simplicity, and efficiency.
The Minister said the government also planned to achieve quantitative fiscal consolidation through controlled borrowing and reduced costs, allowing for increased investment in national development.
“Ensuring compliance with public financial arrangements and public procurement rules is another critical area, with a focus on strengthening financial governance and promoting transparency in public spending,” he said.

Optimizing public spending and social programmes
Dr. Forson emphasized the need to enhance the efficiency of public spending and social programs by optimizing resource allocation to maximize value for money and ensure fiscal adjustment.
He also announced plans to phase out costly, regressive, and ineffective subsidies in the energy sector, transitioning towards targeted social programs to protect vulnerable populations while reducing fiscal strain.

Reforming state-owned enterprises
The Minister highlighted the need for reforming state-owned enterprises (SOEs), with specific attention given to addressing contingent liabilities and reducing fiscal burdens in entities like Cocoa Board and the Electricity Company of Ghana.
He revealed the government’s decision to strengthen Ghana’s fiscal framework by redesigning fiscal rules and enhancing automatic stabilizers to contain budget fragilities and address revenue market issues.

A call for discipline and long-term commitment
Dr. Forson stressed the importance of discipline and a long-term perspective, urging citizens to recognize that “short-term benefits we gain today have long-term consequences for our future.”
He acknowledged the ineffectiveness of fiscal policy over the past eight years and called for a “momentum for reforms,” emphasizing that the “quality of adjustment will be key to support growth and protect the poor and most vulnerable.”
“The new reforms are intended to address the current economic climate, particularly the high cost of borrowing and the need to channel dividends to support national development,” he said.