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Dr. Ato Forson targets 8% inflation with strong expenditure measures

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Atop Pledges fiscal discipline in 2025 Budget

Atop Pledges fiscal discipline in 2025 Budget

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Finance Minister Designate, Dr. Ato Forson, has outlined a strategic approach to reduce inflation and restore economic stability.

Dr. Forson during his vetting on Monday, January 13, emphasized the need for immediate measures to restore confidence in the economy, stressing that reducing inflation is central to stabilizing the financial sector. His plan seeks to bring inflation down to around 8%, which he believes will create a healthier economic environment for investment and growth.
“If we are to introduce strong expenditure measures, we will be able to bring inflation down to about 8%”, he noted.

To achieve this target, he noted that he intends to introduce a strong budget anchored on fiscal discipline and expenditure control. By implementing strict financial measures, the government aims to reduce reliance on short-term borrowing and ease pressure on the already burdened treasury bill market.

He highlighted that reopening the domestic bond market would be key to achieving sustainable financing. This approach he said seeks to shift focus away from expensive short-term borrowing towards longer-term, lower-cost financial instruments, which would help manage the impacts of the domestic debt exchange and Eurobond challenges.

In addition to inflation control through reduced government spending, Dr. Forson plans to work with international financial institutions, such as the African Development Bank, World Bank, European Union, and the International Monetary Fund (IMF), to secure affordable financing for essential government operations.

Tags: Dr. Ato ForsonInflationMinister Vetting

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