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Finance Minister Ato Forson defends government's spending restraint amid IMF commitments

Ghana's Finance Minister, Dr. Cassiel Ato Forson, has defended the government's decision to maintain tight public spending, attributing it to commitments under the International Monetary Fund IMF program. His remarks address criticism from the Minority, which claims the government is not spending despite improved economic indicators. Dr. Forson explained that the current administration inherited obligations from the previous New Patriotic Party NPP government's US$3 billion IMF bailout, which included a commitment to achieve a primary fiscal surplus of 1.5 percent of Gross Domestic Product GDP. He emphasized that IMF agreements are with the government, not political parties, and his administration is responsible for honoring these commitments to ensure Ghana successfully completes the program. The Minister also stated that government spending alone cannot resolve all economic challenges, particularly inflation driven by food prices and global fuel shocks. He noted that fiscal policy must work with monetary policy, highlighting an amendment to the Bank of Ghana Act to make inflation targeting a shared responsibility between the Ministry of Finance and the central bank. Dr. Forson expressed confidence that the government's disciplined fiscal approach would keep inflation within the target range, hoping to end the year with inflation at 5 percent.