Finance Minister-designate, Dr Cassiel Ato Forson, has committed to reducing Ghana’s inflation to single digits through a series of strategic fiscal measures, with a strong focus on controlling government expenditure.
During his vetting on January 13, Dr. Forson outlined his plans to stabilise the economy, emphasising the importance of cutting unnecessary spending and reducing the country’s dependence on borrowing.
One of his primary goals is to bring inflation down to a target range of 8%, with the flexibility of plus or minus two per cent.
“I firmly believe that by implementing robust measures, particularly on the expenditure side, we can reduce inflation to 8% or lower,” Dr. Forson explained.
“This will also help us reopen the domestic bond market, allowing us to move away from our over-reliance on the Treasury bill market.”
Dr. Forson also pledged to restore confidence in the economy by ensuring fiscal discipline and prudent financial management.
He stressed the importance of looking within the country for solutions when external financing is not available.
“When faced with a situation where financing is limited, we must address our expenditure. Let’s cut unnecessary spending and avoid pretending that there is endless money available,” he stated.
“Just as other countries have done, we too can implement similar measures to stabilise our economy and move towards sustainable growth.”
With these proposed strategies, Dr. Forson aims to bring about a more disciplined, efficient, and resilient economy, ultimately ensuring long-term stability and growth for Ghana.
In December 2024, Ghana’s inflation rate was 23.8%, a year-on-year increase from 23.0% in November.
This was the fourth consecutive month of inflation increases.