I'll reduce inflation to single digits – Finance Minister-designate

The finance minister-designate, Dr Cassiel Ato Baah Forson, Monday vowed to tackle Ghana’s inflation through robust fiscal measures, focusing on controlling government expenditure.

Appearing before the Appointment Committee of Parliament to be vetted, Dr Forson outlined proposals to stabilise the economy, including cutting unnecessary spending and reducing reliance on borrowing.

A key priority for him is to bring inflation down to eight per cent, plus or minus two. He believes this could be achieved by introducing strong measures, particularly from the expenditure side.

“…Mr Chairman, I believe if we are to introduce strong measures, particularly from the expenditure side, we will be able to bring inflation down to eight per cent plus or minus two. In doing so, we will be able to re-open the domestic bond market so that we can move away from the over-reliance on the treasury bill market,” Dr Forson said.

To achieve fiscal discipline, he recommended a cut in wasteful spending within by the government.

He, therefore, proposed working with development partners such as the African Development Bank, World Bank, and International Monetary Fund (IMF), to access cheaper sources of financing.

“Mr Chairman, my proposal is let’s look at the expenditure side as well. It should not always be borrowing and borrowing. It is time for us to cut the waste, and I will need the honourable members to cut the waste for us to live and stay within the envelope that we have,” he said.

“Mr Chairman, if there is the need, we will work with our development partners to raise cheaper sources of financing to finance government expendirure, particularly expenditures that can lead to proper and inclusive growth.”

Dr Forson’s pledge to reduce inflation to single digits aligned with Ghana’s historical efforts to maintain price stability.

Studies have shown that single-digit inflation rates could be achieved through optimal fiscal and monetary policies.

The finance minister-designate’s commitment to restoring confidence in the economy amidst fiscal discipline is a welcome development.

As Ghana navigates its fiscal challenges, Dr Forson’s proposals offer a promising path forward.

On Thursday, January 9, President John Dramani Mahama submitted his first batch of ministerial nominations to the Speaker of Parliament in accordance with Article 78 of the 1992 Constitution.

The nominees are Dr Cassiel Ato Baah Forson, to the Finance Ministry, Mr John Abdulai Jinapor, Energy Ministry, and Dr Dominic Akuritinga Ayine, Attorney-General and Minister of Justice.

GNA