Fisical discipline – Adomonline.com

Energy sector risks persist, but… – Ato Forson

Faridatu Seidu — Tue, 15 Apr 2025 14:26:04 +0000

Despite recent progress, Ghana’s energy sector continues to pose significant fiscal risks, Finance Minister Dr. Cassiel Ato Forson has admitted.

Speaking at a joint press briefing with the Bank of Ghana and the International Monetary Fund, Dr. Forson acknowledged the challenges but stressed that targeted reforms are already underway to stem losses and improve financial transparency.

“Fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall,” he told journalists.

Among the key interventions, the Finance Minister highlighted the operationalisation of a single account mechanism and the strict enforcement of the Cash Waterfall Mechanism. This system ensures fair and consistent payments to Independent Power Producers (IPPs) based on established guidelines.

These reforms are expected to improve liquidity flow within the energy sector and prevent the accumulation of new arrears—a recurring issue that has long strained Ghana’s public finances.

Dr. Forson reaffirmed the government’s commitment to transparent governance in the sector, emphasizing that addressing inefficiencies is crucial for restoring macroeconomic stability and securing the credibility of Ghana’s IMF-supported recovery programme.

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Finance Minister admits Ghana faces serious fiscal challenges

Faridatu Seidu — Mon, 03 Mar 2025 12:24:41 +0000

The Minister for Finance, Dr. Cassiel Ato Forson, has admitted that Ghana is grappling with serious fiscal challenges, stressing the need for urgent and decisive action.

Speaking at the opening session of the National Economic Dialogue on Monday, March 3, he highlighted the country’s fragile economic state and the pressing need for sustainable financial management.

Dr. Forson pointed out that the government’s ability to meet its financial obligations remains under strain due to high debt levels, revenue shortfalls, and rising expenditure.

He emphasized that addressing these challenges requires a collective effort from all stakeholders.

“We face serious fiscal challenges that demand bold and strategic decisions. We must ensure fiscal discipline and implement reforms that will restore confidence in our economy,” he stated.

He further underscored the importance of the National Economic Dialogue in shaping solutions to Ghana’s financial difficulties.

According to him, this platform offers an opportunity for reflection and forward-thinking policies that will prevent future economic crises.

“This dialogue is a critical step in assessing our economic situation and finding practical solutions to move our country forward,” he added.

Dr. Forson assured Ghanaians that the government remains committed to implementing reforms that will stabilize the economy and promote long-term growth.

He urged all participants to actively contribute to the discussions, stating that the success of the dialogue would be key in shaping policies that address Ghana’s fiscal difficulties.

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