Govt to introduce debt ceiling as part of fiscal discipline – Ato Forson

Finance Minister, Dr. Cassiel Ato Forson, says the government will be submitting a fiscal responsibility rule to Parliament, setting a debt ceiling that the Ministry of Finance cannot exceed.

This move, he said, is part of efforts to entrench fiscal discipline and restore macroeconomic stability.

Dr. Forson made this known during a high-level engagement with over 22 Managing Directors of banks on Thursday March 20, 2025, where discussions focused on economic recovery, fiscal consolidation, and financial sector stability.

“We are making massive investment cuts and resetting goods and services expenditure to 2023 levels. Our target is clear: achieve a primary surplus of 1.5% as we work to consolidate our gains and rebuild confidence.

“As part of our commitment to fiscal discipline, we will be submitting to Parliament a fiscal responsibility rule—a debt ceiling that the Ministry of Finance cannot exceed,” Dr. Ato Forson wrote in a Facebook post.

On the Domestic Debt Exchange Programme (DDEP), the Finance Minister assured that the government has no intention of defaulting.

“We do not intend to default. All outstanding holdouts have been paid, and we have built enough buffers to fully meet our DDEP obligations this year,”he emphasized.

He also highlighted efforts to reduce reliance on Treasury bills and enhance policy coordination between fiscal and monetary authorities.

“We are also taking deliberate steps to reduce our reliance on the Treasury bill market and strengthen policy coordination between fiscal and monetary authorities. Stability is our priority, and we will not return to the turbulence of 2022. We will not be reckless,” he assured.

Dr. Forson acknowledged the crucial role of the banking sector in Ghana’s economic transformation and reaffirmed the government’s commitment to working closely with financial institutions.

The meeting was attended by the Governor of the Bank of Ghana, Dr. Johnson Asiama, who is set to chair his first Monetary Policy Committee (MPC) meeting next week. His presence, alongside his deputy, the finance minister said signaled a renewed synergy between fiscal and monetary policies.

Mr. Kwamina Asomaning, President of the Ghana Association of Banks (GAB) and CEO of Stanbic Bank Ghana, also commended the government’s budget, highlighting positive market reception and pledging the banking sector’s support in financial inclusion and capital market development.