The Finance Minister-designate, Dr. Cassiel Ato Forson, has announced the National Democratic Congress (NDC) government’s plan to establish an Independent Value-for-Money Office aimed at curbing waste in the public sector.
Dr. Forson, who also serves as the Member of Parliament for Ajumako Enyan Essiam and the Majority Leader, made this revelation during his vetting before Parliament’s Appointments Committee on January 13, 2025.
Addressing the Committee, Dr. Forson criticized the inefficiencies in Ghana’s public financial management system, noting that wasteful spending has persisted for too long, benefiting a privileged few while imposing dire consequences on the nation.
“No one can convince me that our budgets are free of waste. The waste benefits only a select few. Its unintended consequences affect all of us as a nation. It ends up breeding fiscal indiscipline, high budget deficits, and, ultimately, the painful outcome of haircuts,” he stated emphatically.
He explained that the proposed Independent Value-for-Money Office would partner with Parliament to scrutinize government expenditures, ensuring better fiscal discipline and oversight. The office would play a crucial role in setting ceilings for government contracts, which would undergo stringent value-for-money analyses before approval.
“Some of the key reforms we will implement include the establishment of this office. Parliament will be empowered to enforce spending limits on government contracts, ensuring every expenditure is justified and free from waste,” Dr. Forson said.
As part of his vision to strengthen Ghana’s financial management, Dr. Forson also pledged to improve the country’s domestic revenue mobilization. He revealed plans to increase the ratio of domestic revenue to GDP from the current 12-14 percent to a more robust 18 percent.
This move, he said, is part of a broader strategy to enhance economic resilience and reduce reliance on external borrowing.
The announcement has sparked discussions on the potential impact of this office, with analysts suggesting it could mark a significant step in promoting accountability and efficiency in public spending. If implemented, the initiative could help restore fiscal discipline and improve public confidence in the management of the nation’s resources.
Story by: Mercy Addai Turkson
