…As new financial laws enforce stricter oversight and sanctions
Ministers of State and heads of entities, may face potential imprisonment for actions that contribute to fiscal slippages.
This, follows the Ministry of Finance’s announcement of the passage of the Public Financial Management (Amendment) Act, 2025, a landmark piece of legislation, aimed at strengthening fiscal discipline, accountability, and long-term economic stability in Ghana.
This comprehensive reform introduces stricter oversight mechanisms, enforces rigorous fiscal responsibility rules, and establishes an independent Fiscal Council to improve transparency and ensure compliance.
Key reforms introduced by the PFM (Amendment) Act 2025 enhanced sanctions for fiscal mismanagement. The Minister of Finance is now liable to be censured under Article 82 of the Constitution for any violations of fiscal rules.
New fiscal responsibility measures have been established, and a primary balance rule has been implemented, mandating an annual surplus of at least 1.5% of GDP on a commitment basis.
A public debt ceiling has been established, capping the debt-to-GDP ratio at 45% by 2034 to ensure debt sustainability.
An autonomous Fiscal Council has been established, tasked with monitoring adherence to fiscal responsibility rules, ensuring budget credibility, and promoting macroeconomic stability.
It also strengthened oversight and accountability, with the Minister of Finance now required to obtain Parliamentary or Cabinet approval before suspending fiscal rules due to force majeure or unforeseen economic conditions.
It consolidated fiscal management laws, with all fiscal rules unified under a single legal framework, eliminating redundancies and enhancing enforcement mechanisms.
With the enactment of this law, the Fiscal Responsibility Act 2018 (Act 982) has been repealed, and the Presidential Fiscal Advisory Council has been dissolved. This streamlines oversight under the newly established independent Fiscal Council.
The passage of these crucial reforms, well ahead of the September 2025 deadline for the IMF-supported programme, demonstrates the Ministry of Finance’s commitment to restoring fiscal discipline, increasing transparency, and ensuring Ghana’s long-term economic resilience.
The Ministry is dedicated to ensuring full implementation of these laws and will work closely with all stakeholders to maintain Ghana’s macroeconomic stability and prosperity.