The Minister of Finance, Dr. Ato Forson has revealed that his outfit is making massive investment cuts and resetting goods and services expenditure to 2023 levels. With a clear target to achieve a primary surplus of 1.5% “as we work to consolidate our gains and rebuild confidence”.
The Minister who was engaging over 22 Managing Directors of banks in the country during early hours of Thursday, 20th March 2025 to discuss the future of the economy had a very candid and constructive conversation about the heavy lifting required to restore macroeconomic stability and foster sustainable growth.
To that end, “we are making massive investment cuts and resetting goods and services expenditure to 2023 levels. Our target is clear: achieve a primary surplus of 1.5% as we work to consolidate our gains and rebuild confidence.
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”.
On the Domestic Debt Exchange Programme (DDEP), the Minister said, they 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.
“We are also 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. We will not be reckless”, he mentioned.
Most importantly, “we need each other. The banking sector is a crucial partner in our development agenda, and we want to work with you to build a resilient financial system that fuels economic transformation”.
Dr. Forson appeared to be encouraged by the assurances from Dr. Johnson Asiama, Governor of the Bank of Ghana, ahead of his first Monetary Policy Committee (MPC) meeting next week-presence, alongside his deputy, signals a renewed synergy between fiscal and monetary policies.
He also appreciates the insights from Mr. Kwamina Asomaning, President of the Ghana Association of Banks (GAB) and CEO of Stanbic Bank Ghana for his recognition of the positive reception to “our budget and his commitment to deepening financial inclusion and supporting the capital markets reflect the strength of our collaboration”.
“This morning’s meeting reaffirmed a simple truth: We are in this together. We are rebuilding trust, reinforcing fiscal discipline, and forging a path toward a stronger, more resilient economy for Ghana”, he maintained.
by Edzorna Francis mensah
