In a bid to strengthen fiscal discipline and ensure macroeconomic stability, Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced plans to introduce a fiscal responsibility rule that will set a debt ceiling for the Ministry of Finance.
Speaking during a high-level meeting with over 22 Managing Directors of banks on Thursday, March 20, 2025, Dr. Forson emphasized the government’s commitment to cutting expenditures and implementing measures to sustain economic recovery.
The Finance Minister outlined several fiscal consolidation measures, including:
- Massive investment cuts and resetting government spending on goods and services to 2023 levels.
- Targeting a primary surplus of 1.5% to rebuild confidence in the economy.
- Introducing a debt ceiling through legislation to prevent excessive borrowing.
“As part of our commitment to fiscal discipline, we will be submitting to Parliament a fiscal responsibility rule—a debt ceiling that the Ministry of Finance cannot exceed,” Dr. Forson revealed in a Facebook post.
Addressing concerns about the Domestic Debt Exchange Programme (DDEP), Dr. Forson reassured investors that the government has no intention of defaulting and has built sufficient buffers to meet all DDEP obligations this year.
“We do not intend to default. All outstanding holdouts have been paid, and we have built enough buffers to fully meet our DDEP obligations this year,” he assured.
Dr. Forson also highlighted efforts to reduce reliance on short-term Treasury bills and improve coordination between fiscal and monetary policies to ensure economic stability.
“We are taking deliberate steps to reduce our reliance on the Treasury bill market and strengthen policy coordination between fiscal and monetary authorities. Stability is our priority, and we will not return to the turbulence of 2022,” he stated.
The meeting was attended by key financial stakeholders, including the Governor of the Bank of Ghana, Dr. Johnson Asiama, who is set to chair his first Monetary Policy Committee (MPC) meeting next week. His presence, alongside his deputy, signaled a renewed collaboration between fiscal and monetary policymakers.
Kwamina Asomaning, President of the Ghana Association of Banks (GAB) and CEO of Stanbic Bank Ghana, commended the government’s economic policies, noting the positive market reception of the recent budget and pledging the banking sector’s support in financial inclusion and capital market development.
The government’s renewed fiscal strategy aims to restore investor confidence, enhance financial sector stability, and ensure long-term economic growth.
