Finance Ministry Rolls Out Bold Structural Reforms Amid IMF Programme
As part of Ghana’s ongoing IMF-backed recovery programme, the Ministry of Finance has introduced a wide-ranging set of structural reforms aimed at improving fiscal discipline, transparency, and long-term debt sustainability. These reforms were unveiled by Finance Minister Dr. Cassiel Ato Forson during a joint press conference with the Bank of Ghana and the IMF on April 15.
Dr. Forson explained that the government had taken swift action to address past breaches of both structural and quantitative targets. Some reforms, he noted, have even been implemented ahead of schedule to restore programme integrity and rebuild public trust.
One of the key initiatives involves an audit of Ghana’s 2024 arrears. This will be conducted by the Auditor-General in collaboration with two international firms, with results expected within eight weeks. The findings will guide further corrective measures and ensure accountability in public spending.
Additional reforms target key financial laws. Amendments to the Public Financial Management Act and the Procurement Act are underway to introduce tighter fiscal rules and better expenditure controls. A new Compliance Desk has also been created to monitor performance across Ministries, Departments, and Agencies (MDAs). This will be supported by a forthcoming compliance league table, designed to promote transparency and discipline.
“These reforms go beyond technicalities—they’re about rebuilding confidence in our financial systems,” Dr. Forson said, underlining the need for credibility in economic governance.
Despite recent economic progress, Dr. Forson acknowledged that the energy sector still presents serious fiscal risks. However, targeted reforms are being implemented to reduce inefficiencies and improve financial accountability in the sector. He emphasized that managing these risks is vital to Ghana’s broader macroeconomic recovery.
Central to these reforms is the operationalisation of the single treasury account and stricter application of the Cash Waterfall Mechanism, which ensures consistent and fair payments to Independent Power Producers (IPPs). These steps aim to improve cash flow, reduce arrears, and prevent the recurrence of financial bottlenecks in the energy sector.
Dr. Forson reaffirmed the Mahama administration’s commitment to fully implementing the IMF programme despite the tough challenges it inherited. He thanked Ghanaians for their resilience and understanding during the economic adjustment process.
He concluded by pledging his personal commitment to the programme’s success, assuring that the government’s efforts would continue to focus on inclusive growth, job creation, and protecting vulnerable populations.
“This is about building the Ghana We Want—together,” Dr. Forson declared, reaffirming the administration’s resolve to steer the country toward economic recovery and long-term stability.
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