The Finance Minister, Dr. Cassiel Ato Forson, has said that key lessons from the Annual Budget Performance Report (BPR) as part of the Public Financial Management Act, 2016 (Act 921), as amended, will guide the government’s choices in the post-2024 era as they work to reset economy towards the “Ghana we want.”
Dr. Forson says that “We must, and we will, build a new culture that promotes and sustains fiscal discipline.”
In a statement he issued on the 2024 Consolidated MDAS Annual Budget Performance Report, he recounted that the years prior to 2024 proved to be very difficult globally.
“In Ghana, we saw the most ignoble deterioration of the economy and broader societal well-being. Inflation galloped, exchange rate depreciated sharply and remained volatile. Interest rates rose and credit became simply unaffordable. Ghana, therefore had no option but to seek support from the IMF through the Extended Credit Facility (ECF) programme on the heels of an expansive domestic and external debt restructuring which had severe consequences,” he said.
In that context, he added, the year 2024, being an election year, was uniquely significant.
The then government, he said, set for itself macro-economic targets focused on re-anchoring fiscal and debt sustainability.
“The promise was to course-correct the misalignment in key indicators to support the economy. Despite the progress made under the IMF programme, the macroeconomic environment remained fragile. The economy remained fragile, with 2024 recording significant fiscal slippages. The primary deficit worsened, and the year ended with accumulation of huge central government arrears amounting to GH¢67.5 billion representing 5.7 percent of GDP,” his statement said.
“The lessons from this challenging national economic experience are there for everyone: fiscal slippages are costly and far-reaching.”
Dr. Forson noted that these experiences validate the prudence in requiring the preparation of the Annual Budget Performance Report (BPR) as part of the Public Financial Management Act, 2016 (Act 921), as amended.
“Beyond meeting the requirements of the PFM Act, the BPR enables us to assess the performance and impact of our policy choices and take corrective measures where necessary. Furthermore, in accordance with the provisions of Section 27 of the PFM Act, stakeholders will receive updates on the actions taken to implement the recommendations of Parliament in respect of the report of the Auditor-General as well as updates on multi-year expenditure undertaken in 2024.
“I must state that the key lessons from this BPR will guide our choices in the post-2024 era as we work to reset economy towards the Ghana we want. We must, and we will, build a new culture that promotes and sustains fiscal discipline. As is always the case, this BPR is the product of cross-sectoral collaborations. The Ministry of Finance is thankful to the Ministries, Departments and Agencies who provided critical inputs and validated information. The efforts of the staff of this Ministry, who have coordinated the preparation of this BPR, are also acknowledged. Your sense of professionalism and commitment to the national cause is indeed endearing. As a Ministry, we will stand ready to provide clarification and respond to any related queries through the established channels, including the Right to Information Platform.
“A new era is upon us. We have a great opportunity to rewrite our most recent economic history in a positive light. Let us join forces and work together to build the Ghana we want. It is our promise and duty to do so,” he said.
