Dr. Cassiel Ato Forson, President Mahama’s nominee for Finance Minister, has committed to reducing Ghana’s inflation to single digits by implementing stringent fiscal measures, especially curbing government expenditure.
During his vetting on January 13, Dr. Forson proposed strategies to stabilize the economy, including cutting wasteful spending and reducing dependence on borrowing.
He emphasized a target of 8% inflation, stating, “By introducing robust measures, particularly on the expenditure side, we can achieve an inflation rate of 8% plus or minus two. This will allow us to reopen the domestic bond market and reduce reliance on the treasury bill market.”
The Finance Minister-designate also promised to restore confidence in the economy amidst fiscal discipline.
“If you are confronted with a situation where you do not have financing, then there is a need for you to look within. 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 somewhere, we can also do it here,” he continued.
Cutting wasteful spending
He will also focus on reducing wasteful spending within the government.
“My proposal is let’s look at the expenditure side as well; it shouldn’t always be borrowing and borrowing. It is time for us to cut the waste, and so I will lead the process to cut the waste, and I will need the honourable members to cut the waste so that we live and stay within the envelope that we can.”
To further address Ghana’s fiscal challenges, Ato Forson noted that the country would work with its development partners, including the African Development Bank, the World Bank, the European Union, and other bilateral agencies, as well as the International Monetary Fund (IMF) if the need arises to access cheaper sources of financing.
“If there is the need, we will work with our development partners to raise cheaper sources of financing to finance government expenditure, particularly expenditures that can lead to proper and inclusive growth,” Forson concluded.
