Dr. Cassiel Ato Forson, Minister-Designate for Finance has outlined his vision for Ghana’s economic recovery during his vetting by Parliament’s Appointments Committee on Monday, January 13.
Among his key proposals is a commitment to reducing Ghana’s inflation to single digits while addressing fiscal inefficiencies.
While speaking on the contentious issue of the betting tax, Dr. Forson downplayed its economic significance, asserting that the revenue it generates less than GHC50 million annually is minimal. He supported calls for the tax’s removal, as pledged by President John Dramani Mahama during his campaign.
“Some of the taxes are not bringing in any revenue that you should [increase]. For example, the betting tax is bringing in less than GHC50 million a year. It’s a nuisance tax, and scrapping GHC50 million will not mean anything in a way that will affect the economy,” he said.
The MP further emphasized that achieving a stable economy begins with robust fiscal measures, primarily by controlling government expenditure. He set an ambitious target of bringing inflation down to 8%, with a margin of plus or minus two.
“I believe if we are to introduce strong measures, particularly from the expenditure side, we will be able to bring inflation down to 8% plus or minus two. In doing so, we will be able to reopen the domestic bond market so that we can move away from the over-reliance on the treasury bill market,” he explained.
The Finance Minister-designate pledged to focus on reducing wasteful government spending as part of his strategy to stabilize the economy. He stressed the need to shift away from excessive borrowing, advocating for a more prudent approach to fiscal management.
“My proposal is let’s look at the expenditure side as well; it shouldn’t always be borrowing and borrowing. It is time for us to cut the waste, and so I will lead the process to cut the waste, and I will need the honourable members to cut the waste so that we live and stay within the envelope that we can,” he stated.
To address Ghana’s fiscal challenges, Ato Forson indicated plans to collaborate with international development partners, including the African Development Bank, the World Bank, the European Union, and the International Monetary Fund (IMF), to access affordable financing options for government expenditure.
“If there is the need, we will work with our development partners to raise cheaper sources of financing to finance government expenditure, particularly expenditures that can lead to proper and inclusive growth,” he concluded.