Finance Minister, Dr Ato Forson, has revealed that his ministry has commissioned the audit of all outstanding payables and commitments before he assumed office. In a presentation at the Spring Meeting of the World Bank and IMF in Washington DC, the finance minister told investors that the Auditor General’s Department and two private audit firms have been engaged to carry out an intensive 8-week audit with the objective of verifying the legitimacy and accuracy of the claims. The findings of the audit will also “guide the implementation of corrective actions to resolve any irregularities and improve accountability going forward.”

The arrears total GH¢67.5 billion and represents a significant challenge for the government’s fiscal plans. Ato Forson has adopted a hawkish approach to fiscal matters, erring on the side of reduced spending and borrowing despite concerns about its effect on growth or banking sector liquidity. For instance, his reduced appetite for treasury bills has dropped interest rates from about 28% from the start of the year to about 15% at the latest auction in April.

In addition to the audit, the finance minister also outlined the following policies to enforce fiscal discipline and improve public financial management.

1. Strengthening commitment controls. “Effective April 3, 2025, no government contract will be approved without prior commitment authorization from the Ministry of Finance.”
2. Public Financial Management Reforms & Fiscal Rules. The Public Financial Management Act, 2016 (Act 921) has been amended to require a 1.5% primary surplus on commitment basis each year, and to reach a debt-to-GDP target of 45% by 2035.
3. Enforcing Compliance and Oversight. “The Ministry has operationalized a new Compliance Division tasked with monitoring how Ministries, Departments, and Agencies (MDAs) adhere to fiscal commitments. A newly appointed Director is now leading the division’s efforts.”

The finance minister has further revealed that the government’s debt management strategy will be presented in the mid-year budget review which is likely to come off in late July.