Finance Minister Dr Cassiel Ato Forson has said the government’s fiscal correction measures reduced primary expenditure from 18.7% of Gross Domestic Product (GDP) in 2024 to 13.2% in 2025 without undermining economic growth.
Presenting the 2026 Mid-Year Fiscal Policy Review in Parliament, Dr Forson said the 2025 budget reset government spending to 2023 nominal levels by eliminating what he described as wasteful expenditure that had weakened fiscal management over the years.
“The primary balance also improved from a deficit of 2.9% of GDP in 2024 to a surplus of 2.5% of GDP in 2025, placing public debt firmly on a downward trajectory,” he said.
According to him, the improvement demonstrates the government’s commitment to fiscal discipline and sends “an unmistakable signal to Ghanaians, investors, and other development partners that fiscal discipline is the new order.”
Dr Forson said government had also recalibrated its International Monetary Fund (IMF)-supported programme by shifting the focus from revenue-led consolidation to expenditure-led consolidation, which he described as a fairer approach to sharing the burden of economic adjustment.
He added that Parliament had amended the Public Financial Management Act to introduce a binding fiscal rule requiring government to maintain a minimum annual primary surplus of 1.5% of GDP and achieve a debt-to-GDP ratio ceiling of 45% by 2034.
The Finance Minister outlined several institutional reforms introduced to strengthen public financial management, including the establishment of a Value for Money Office to improve expenditure efficiency, the creation of a Fiscal Council to enhance oversight and transparency, and a comprehensive audit of government payables.
He also noted amendments to the Public Procurement Act requiring commitment authorisation before procurement activities are undertaken.
On reducing the size of government, Dr Forson said the number of ministers had been cut from a peak of 123 to 60, while ministries had been reduced from 30 to 23.
“A leaner government is not merely good politics, but is also a sound fiscal policy,” he stated.
He added that government had reduced non-essential expenditure on foreign travel, workshops, conferences and vehicle procurement, while programmes such as the Ghana CARES top-up and U-Start had been discontinued to redirect resources to other priority areas.
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