In a shocking revelation that underscores systemic financial mismanagement, the Ministry of Finance (MoF) has been ranked as the most fiscally reckless public institution in Ghana for the period spanning 2021 to 2023. This designation, detailed in a recent report by IMANI Africa and Oxfam Ghana, mirrors a similar assessment made between 2015 and 2020, suggesting persistent challenges with fiscal discipline.
The third edition of the Fiscal Recklessness Index highlights financial irregularities among Ministries, Departments, and Agencies (MDAs) across the country. Once again, the Finance Ministry topped the list, followed closely by the Ministries of Food and Agriculture, Communication and Digitalisation, Roads and Highways, and Health. The findings have sparked concerns about how public funds are managed, especially in a nation grappling with economic hardships.
Speaking during a media briefing on the report, Dennis Asare, Senior Research Associate at IMANI Africa, disclosed that Ghana lost a staggering GH₵ 4. 9 billion in 2023 alone due to various financial irregularities. He stressed that this amount could have been used to bolster vital social intervention programmes such as the Livelihood Empowerment Against Poverty (LEAP) initiative and the Ghana School Feeding Programme. The scale of the losses is devastating, particularly for the millions of Ghanaians relying on such programs for survival.
Mr. Asare explained that the Ministry of Finance' s designation as the most fiscally reckless institution stems from the fact that nearly 90% of the identified irregularities were traced back to it. As the central management body responsible for overseeing other government institutions, the MoF' s poor financial stewardship is seen as symptomatic of broader systemic issues.
One of the critical failings highlighted in the report was the government' s inability to properly collect taxes, leading to significant gaps in revenue mobilization. This shortfall further exacerbates the nation' s financial woes and raises questions about the effectiveness of the MoF' s leadership.
To address these challenges, the report advocates for the establishment of a stronger, legally- backed fiscal council with the authority to oversee financial practices across public institutions. Mr. Asare emphasized that political parties must unite on this issue, stating, " We need a stronger fiscal council, not just a committee. Now is the time to formalize it with legal backing and ensure it has the authority to perform its critical oversight functions effectively. "
With financial mismanagement threatening the future of Ghana' s economy, the call for reform has never been more urgent.
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