Accra: The finance minister-designate, Dr. Cassiel Ato Baah Forson, has committed to tackling Ghana's inflation through robust fiscal measures, primarily by controlling government expenditure. Appearing before the Appointment Committee of Parliament on Monday, Dr. Forson detailed his proposals aimed at stabilizing the economy, which include cutting unnecessary spending and reducing reliance on borrowing.
According to Ghana News Agency, Dr. Forson emphasized his goal to bring inflation down to eight percent, plus or minus two, by introducing strong measures, particularly from the expenditure side. He stated, "Mr. Chairman, I believe if we are to introduce strong measures, particularly from the expenditure side, we will be able to bring inflation down to eight percent plus or minus two. In doing so, we will be able to re-open the domestic bond market so that we can move away from the over-reliance on the treasury bill market."
To ensure fiscal discipline, Dr. Forson recommended cutting wasteful spending within the government. He proposed collaboration with development partners such as the African Development Bank, World Bank, and International Monetary Fund (IMF) to access cheaper sources of financing. He remarked, "Mr. Chairman, my proposal is let's look at the expenditure side as well. It should not always be borrowing and borrowing. It is time for us to cut the waste, and I will need the honourable members to cut the waste for us to live and stay within the envelope that we have."
Dr. Forson's commitment to single-digit inflation aligns with Ghana's historical efforts to maintain price stability, drawing on studies that suggest optimal fiscal and monetary policies can achieve this goal. His pledge to restore confidence in the economy amidst fiscal discipline is seen as a positive step.
As Ghana navigates its fiscal challenges, Dr. Forson's proposals offer a promising path forward. On Thursday, January 9, President John Dramani Mahama submitted his first batch of ministerial nominations to the Speaker of Parliament under Article 78 of the 1992 Constitution. The nominees include Dr. Cassiel Ato Baah Forson for the Finance Ministry, Mr. John Abdulai Jinapor for the Energy Ministry, and Dr. Dominic Akuritinga Ayine for Attorney-General and Minister of Justice.
