Finance Minister, Dr. Cassiel Ato Forson, has announced plans to introduce a fiscal responsibility rule to Parliament, setting a debt ceiling that the Ministry of Finance cannot exceed.
This initiative is part of broader efforts to promote fiscal discipline and ensure macroeconomic stability.
Speaking during a high-level engagement with 22 Managing Directors of banks on Thursday, March 20, 2025, Dr. Forson outlined the government’s strategy for economic recovery and fiscal consolidation.
“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,”.
In a Facebook post, Dr. Forson reiterated the government’s commitment to fiscal discipline, stating , “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.”
Addressing concerns about the Domestic Debt Exchange Programme (DDEP), the Finance Minister assured stakeholders that the government is committed to honoring its obligations.
“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”.
Dr. Forson also highlighted efforts to reduce dependence on Treasury bills and strengthen coordination between fiscal and monetary authorities.
“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 assured.
The meeting, aimed at fostering collaboration between the government and the financial sector, was also attended by the Governor of the Bank of Ghana, Dr. Johnson Asiama. As he prepares to chair his first Monetary Policy Committee (MPC) meeting next week, Dr. Asiama’s presence signaled a renewed synergy between fiscal and monetary policies.
Dr. Forson emphasized the pivotal role of the banking sector in Ghana’s economic transformation.
“The banking sector is a critical partner in our journey toward economic recovery, and we remain committed to working closely with financial institutions”.
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This morning, I had the privilege of engaging with over 22 Managing Directors of banks in a discussion on the future of our economy.
It was a 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), let me be unequivocal: 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.
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.
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.
I was heartened by the assurances from Dr. Johnson Asiama, Governor of the Bank of Ghana, ahead of his first Monetary Policy Committee (MPC) meeting next week. His presence, alongside his deputy, signals a renewed synergy between fiscal and monetary policies.
I also greatly appreciate the insights from Mr. Kwamina Asomaning, President of the Ghana Association of Banks (GAB) and CEO of Stanbic Bank Ghana. 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.
