Dr Forson Traces 2022 Crisis to Fiscal Mismanagement, Vows Continued Reforms
Ghana’s Finance Minister Dr. Cassiel Ato Forson has laid blame for Ghana’s 2022 economic crisis on what he described as “reckless spending, corruption, and fiscal dominance” under the previous Akufo-Addo/Bawumia administration.
Presenting the mid-year budget review to Parliament, Dr. Forson said poor economic management led to rapid cedi depreciation, record-high inflation, and “the highest level of incompetence” in the coordination between the Ministry of Finance and the Bank of Ghana.
He noted that monetary financing by the Bank of Ghana reached unprecedented levels, worsening fiscal, monetary, and external imbalances and plunging the country into one of its deepest crises in decades.
Mahama Administration’s Reset Agenda
Inheriting what he called a “dire fiscal situation,” Dr. Forson said the government of President John Dramani Mahama chose not to make excuses but to “reset the country” through structural reforms and transformation. The administration focused on restoring good governance, policy credibility, and renewing the social contract with Ghanaians by prioritizing deliberate, targeted economic management.
At the onset of its term, the government convened a National Economic Dialogue and a National Education Forum to build consensus on the way forward. Direct engagements were also held with key stakeholder groups, including market women, trade unions, youth organizations, and traditional leaders, to ensure inclusive decision-making.
Fiscal Discipline Backed by Social Investments
Dr. Forson emphasized that under the new economic management model, fiscal discipline has been tightened without undermining social investments. “We have redefined national priorities by being deliberate in both our policy choices and approach to economic management,” he told Parliament.
He pointed to the 2025 budget, which outlined clear measures to stabilize the economy and lay the groundwork for sustainable growth. The strategy, he said, was already yielding results, with improvements on the macroeconomic front.
