Ghana’s Finance Ministry has introduced the Public Financial Management (Amendment) Act 2025, aimed at enhancing oversight and accountability in public financial management. The new act introduces several key reforms, including:
- Enhanced Oversight and Accountability: The Finance Minister must secure Parliamentary or Cabinet approval before suspending fiscal rules due to force majeure or economic shocks.
- Independent Fiscal Council Established: A legally mandated, autonomous council will monitor compliance with fiscal rules, reinforcing budget credibility and economic stability.
- New Fiscal Responsibility Measures: A primary balance rule mandates an annual surplus of at least 1.5% of GDP on a commitment basis. A public debt rule caps the debt-to-GDP ratio at 45% by 2034 to ensure sustainability
- Stronger Sanctions for Fiscal Mismanagement: The Finance Minister faces censure under Article 82 for breaches of fiscal rules. Ministers and Heads of Covered Entities risk imprisonment for contributing to fiscal slippages.
These reforms aim to promote transparency, accountability, and prudent financial management in Ghana’s public sector .
Ruth Abla ADJORLOLO
