Finance Minister-nominee Dr. Cassiel Ato Forson has committed to reducing Ghana’s inflation to single digits through a series of robust fiscal measures, with a particular focus on controlling government expenditure.
During his vetting session on January 13, he outlined his strategy for stabilizing the economy, which includes cutting unnecessary spending and reducing the country’s dependence on borrowing.
Dr. Forson identified inflation control as one of his key priorities, aiming to bring it down to a target range of 8%, with a margin of plus or minus two.
“If we introduce strong measures, particularly on the expenditure side, we will be able to reduce inflation to 8% plus or minus two,” he explained.
He also mentioned that achieving this target would allow Ghana to reopen the domestic bond market, which could reduce the reliance on the treasury bill market.
The Finance Minister-designate emphasized the need for fiscal discipline to restore confidence in the economy. He argued that when financing is scarce, the government must look within its own resources.
“Let’s deal with expenditure, let’s cut expenditure, and let us not pretend that there is money available,” Dr. Forson said, highlighting the importance of prudent financial management.
He suggested that similar measures could be adopted from international examples where countries have faced similar challenges.
Dr. Forson also pledged to tackle wasteful spending within the government, making it clear that borrowing should not be the go-to solution.
“It is time for us to cut the waste, and I will lead the process,” he stated, calling for collective action from all stakeholders, including members of Parliament, to ensure that the country lives within its means.
In his proposals, the Finance Minister-nominee stressed the need for the government to streamline its expenditure, warning that continual borrowing would only deepen the fiscal challenges.
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