Finance Minister Dr. Cassiel Ato Forson has dismissed calls for parliamentary approval of Treasury bill (T-Bill) issuances, arguing that such a requirement would be impractical and disruptive to Ghana’s financing strategy.

The debate over whether T-Bills should require parliamentary approval stems from a legal challenge filed by financial lawyer Jonathan Amable, who has petitioned Ghana’s Supreme Court to compel the government to seek parliamentary approval before issuing Treasury bills. Amable argues that because T-Bills constitute government borrowing, they must comply with Article 181(4) of the 1992 Constitution, which mandates that all public debt acquisitions receive parliamentary consent. His case has reignited discussions about the constitutional limits of government borrowing and whether T-Bills should be treated the same as long-term debt instruments.

But Dr. Forson, however, contends that Ghana’s annual budget process already provides the necessary approvals for borrowing, including the use of Treasury bills.

In an interview on ChannelOne TV, monitored by ceditalk, he explained that the fiscal table within the budget outlines how the government will finance its deficit, including borrowing from domestic sources such as T-Bills. Adding that, Parliament, through its Appropriations Bill and budget approval process, effectively authorizes the government’s borrowing strategy at the beginning of each fiscal year.

“The budget statement includes a fiscal table that shows how the government will finance its deficit. When the budget is presented to Parliament, it indicates the borrowing strategy, including domestic sources like Treasury bills,” he stated.

According to him, while Parliament has an oversight role in setting broad debt management policies, Treasury bills are tactical and operational in nature, requiring flexibility in execution.

“T-Bills are short-term instruments, sometimes weekly rollovers. The auction process closes on Friday afternoons, and decisions must be made before 4 PM. At what point would you take it to Parliament for approval? This would mean Parliament must sit every Friday, which is impractical,” he argued.

The finance minister insists that no country in the world mandates parliamentary approval for short-term T-Bills, emphasizing that the nature of these instruments makes such a process unworkable.

He further noted that other sub-Saharan African countries, such as Nigeria and South Africa, have independent debt management offices that oversee bond and T-Bill issuance without direct political interference. He suggested that Ghana could explore a similar model instead of requiring weekly parliamentary approvals for short-term borrowings.

“What some countries have done is to separate the Ministry of Finance from debt management functions. They have created an independent debt management office that reports to Parliament periodically but does not rely on the minister’s instructions for every single issuance,” he proposed.

While the Supreme Court is yet to rule on the case, Dr. Forson maintains that mandating parliamentary approval for every T-Bill issuance would be unprecedented and unworkable, stressing that Ghana’s existing debt management framework already provides sufficient oversight.