Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, has embarked on a series of engagements with key government agencies to address pressing issues in revenue mobilization and public expenditure management.
These discussions, which included meetings with the Ghana Revenue Authority (GRA) and the Controller and Accountant General’s Department (CAGD), come as the government intensifies efforts to meet its fiscal targets.
During his visit to the GRA, the Finance Minister highlighted the critical role of domestic resource mobilization in achieving the government’s broader economic agenda. He noted that limited access to borrowing markets has left Ghana with few financing alternatives.
“Without revenue, there’s little you can do,” Dr. Forson remarked, adding that Ghana currently has no access to Eurobond markets, domestic bonds, or commercial bank loans, relying solely on Treasury bills and multilateral loans. “This means we have to focus more on domestic resource mobilization rather than borrowing externally,” he stressed.
Despite these challenges, the Minister expressed optimism about the GRA’s performance. He commended the agency for surpassing its 2024 revenue target but urged it to raise the bar for 2025. “Achieving your target will not be enough; you have to exceed it so that we can reduce borrowing. The space to borrow is simply not there,” he said.
Dr. Forson also pointed to the International Monetary Fund (IMF) program, noting that Ghana is bound to raise additional tax revenue equivalent to 0.6% of GDP as part of its fiscal consolidation efforts.
“This agreement is between the government of Ghana and the IMF, not political parties, so we are obligated to meet this target. I urge you to find innovative ways to achieve this,” he urged the GRA team.
The Acting Commissioner General of the GRA, Anthony Kwasi Sarpong, pledged to build a collaborative and efficient team to meet these challenges. He emphasized that the strength of the institution lies in its people.
“I may have two hands and one head, but together with the entire GRA team, we can overcome any challenges,” Mr. Sarpong said. He committed to fostering a culture of teamwork and focusing on growth and welfare as the foundation for achieving revenue targets.
“Our mandate is simple: grow and achieve revenue. This will remain our top priority, and we pledge to work hard to support the government’s commitments,” he added.
Expenditure Management
In a separate meeting with the Controller and Accountant General’s Department, Dr. Forson emphasized the importance of expenditure quality in managing public resources. He underscored that while the Ministry of Finance determines expenditure priorities, the CAGD plays a critical role in ensuring compliance with legal frameworks.
“Your role is to ensure that whatever we direct you to pay is carefully reviewed. If it aligns with the law, proceed with payment. But the quality of expenditure is the prerogative of the Ministry of Finance,” the Minister explained.
The Controller and Accountant General, Kwasi Agyei, expressed gratitude to the Minister for his leadership and reaffirmed the department’s commitment to transparency and accountability. “Our mandate, as outlined in the Public Financial Management (PFM) Act, is to ensure transparency in transactions and proper management of funds,” he said.
Mr. Agyei highlighted the department’s efforts to enhance financial systems, including the adoption of the Integrated Financial Systems and Treasury (IFSAT) platform, which has improved transparency. However, he acknowledged the need for further upgrades to meet evolving demands.
“Declining public trust in the management of public funds is a growing concern across Africa. While Ghana has not yet reached a critical point, we must act now to sustain confidence in our financial systems,” he warned.