The Minister for Finance, Dr. Cassiel Ato Forson, has outlined seven key reform focus areas aimed at resetting Ghana’s economy and addressing long-standing fiscal challenges. Speaking at the National Economic Dialogue on March 3, 2025, he emphasized the need for structural adjustments to ensure sustainable growth, improve revenue mobilization, and enhance fiscal discipline.
Dr. Ato Forson acknowledged the economic difficulties facing the country, highlighting rising debt levels, high interest rates, declining investor confidence, and inefficient public spending as key concerns. He stated that Ghana cannot continue business as usual, and bold reforms must be implemented to restore economic stability and lay a solid foundation for growth.
The Seven Key Reform Focus Areas
1. Enhancing Domestic Revenue Mobilization – According to him, the government aims to improve tax collection by balancing equity, simplicity, and efficiency in the tax system. This includes broadening the tax base, reducing leakages in tax administration, and leveraging digital tools for better compliance. Efforts will also focus on addressing tax exemptions, which cost the country billions in lost revenue annually.
2. Pursuing Qualitative Fiscal Consolidation – Dr. Forson added here that while Ghana must reduce its fiscal deficit, the government will ensure that austerity measures do not stifle growth. Fiscal consolidation will be designed to protect social programs and growth-enhancing investments, while cutting wasteful spending. The Finance Minister stressed that fiscal discipline should not come at the cost of development.
3. Ensuring Compliance with Public Financial Management and Procurement Laws – The finance minster adds that strengthening commitment controls will be a priority to prevent budget overruns and unapproved expenditures. Here, he says government institutions will be required to strictly adhere to procurement laws to ensure that all public spending provides value for money.
4.Enhancing Efficiency in Public Spending – The Finance Minister stressed that public sector efficiency must improve, especially in the management of capital expenditures. Projects will be prioritized based on their impact and necessity, rather than political considerations. Government payroll and administrative costs will also be reviewed to eliminate inefficiencies.
5. Phasing Out Costly and Ineffective Subsidies – One of the most controversial but necessary reforms will be the gradual removal of inefficient subsidies in the energy sector. According to Dr. Ato Forson, subsidies on electricity and fuel have ballooned Ghana’s fiscal deficit and must be reviewed to ensure that resources are directed towards more targeted social interventions.
6.Reforming State-Owned Enterprises (SOEs) – The government says it will also restructure loss-making SOEs, especially Cocobod and the Electricity Company of Ghana (ECG), which continue to drain public finances. SOEs will be required to operate efficiently, reduce financial losses, and limit dependence on government bailouts.
7.Strengthening Ghana’s Fiscal Framework – Finally, the Finance Ministry will introduce measures to redesign Ghana’s fiscal rule, enhance automatic stabilizers, and reduce budget rigidities. This will include reforming revenue earmarking policies that have made fiscal adjustments difficult in times of crisis.
Beyond taxation, government spending, and financing, Dr. Ato Forson highlighted institutional weaknesses and policy gaps as key contributors to Ghana’s economic difficulties. He acknowledged that the 2018 Fiscal Responsibility Act had failed to curb excessive debt accumulation due to weak enforcement mechanisms and credibility issues.
The Finance Minister also questioned Ghana’s ability to fully capitalize on its natural resource wealth, stating that fiscal revenue from extractive industries is only around 1.5% of GDP because the country fails to capture the full economic rent.
“The extractive industry enjoys a rent of 14%, yet Ghana is unable to take advantage of even 1% of that for national development. Can we not redirect just 1% of this rent to fund critical infrastructure and human capital development?” he asked.
Concluding his speech, Dr. Ato Forson made a clarion call for national unity and shared responsibility in addressing Ghana’s economic challenges. He urged citizens, businesses, labor unions, and development partners to support the reform agenda, emphasizing that fixing the economy requires sacrifice from all stakeholders.
“We just have to be disciplined and understand that the short-term benefits we gain today have a long-term crisis for our future. Let’s do this for Mother Ghana,” he declared.
Dr. Ato Forson in all, stressed that the country must now build momentum for real reforms, ensuring that any fiscal adjustments are designed to support growth while protecting the most vulnerable.
Here is a copy of his presentation at the Forum: Download
