Finance Minister Urges Fiscal Discipline to Sustain Economic Recovery

Finance Minister Cassiel Ato Forson has cautioned against fiscal indiscipline, warning that Ghana could face another economic crisis if reforms introduced under the country’s International Monetary Fund (IMF) Extended Credit Facility (ECF) programme are not sustained.

According to the minister, the government remains committed to maintaining fiscal discipline and ensuring that ongoing economic reforms deliver long-term stability to prevent a return to emergency bailout arrangements.

Speaking on Ghana’s post-IMF economic direction, Dr Forson said the government is focused on implementing sustainable policies capable of shielding the economy from future shocks.

“What we seek to do is to make sure that whatever we do today is sustainable, so that we don’t go back to the good old bad days, where we get to an emergency situation that we have to go to the IMF,” he stated.

He explained that although Ghana does not anticipate returning to another IMF bailout programme, the country cannot afford complacency in managing the economy.

“We are putting in place measures so that we don’t have to go for a bailout. We believe that we do not have a need to go for a bailout every day, but it doesn’t mean we should let our guard down. It means that we need to work harder,” he added.

Dr Forson further noted that sustaining macroeconomic stability remains critical to attracting private sector investment and supporting long-term economic growth.

“We need to sustain the gains of economic stability to be able to attract private investment into our country and build on it for sustainable growth,” he said.

The Finance Minister also stressed that the successful completion of the IMF programme should not be interpreted as an excuse for relaxed fiscal management.

“So, bailout is out of the equation,” he stated, while warning that economic indiscipline continues to pose a major threat to Ghana’s recovery efforts.

Reflecting on the country’s economic history, Dr Forson said poor fiscal management and the rapid depletion of reserves have repeatedly pushed Ghana into IMF-supported programmes.

“Clearly, indiscipline is what has landed Ghana on a number of bailout programmes because largely we depleted our reserves so fast and enjoyed the benefits of consolidation too quickly,” he said.

He added that the government’s immediate priority is to consolidate the gains made under the IMF-supported programme and build a stronger foundation for sustainable economic growth.

“What we seek to do going forward is to build on the momentum that this ECF has created for all of us and sustain it for a very long time so that the country can benefit from it,” he added.