The Ministry of Finance has announced enacting the Public Financial Management (Amendment) Act, 2025, a significant legislative reform designed to enhance fiscal discipline, accountability, and long-term economic stability in Ghana.

The new law introduces stringent oversight mechanisms, enforces strict fiscal responsibility measures, and establishes an independent Fiscal Council to ensure greater transparency and compliance with financial regulations.

One of the key provisions of the Act is the imposition of enhanced sanctions for fiscal mismanagement. Under the new framework, the Minister of Finance may face censure under Article 82 of the Constitution for any breaches of fiscal rules.

Ghana Enacts Groundbreaking Public Financial Management Act to Enhance Fiscal Discipline

The Ministry of Finance has announced the passage of the Public Financial Management (Amendment) Act, 2025, a landmark legislation aimed at bolstering fiscal discipline, accountability, and… pic.twitter.com/UK71N4Mq7Z

— Cassiel Ato Forson(PhD) (@Cassielforson) April 2, 2025

Additionally, Ministers of State and Heads of Covered Entities found responsible for fiscal slippages could face imprisonment, marking a firm stance against financial recklessness in public administration.

The Act also introduces new fiscal responsibility measures to safeguard the country’s economic future. It mandates a primary balance rule requiring an annual surplus of at least 1.5% of GDP on a commitment basis.

Furthermore, a public debt ceiling has been set, capping the debt-to-GDP ratio at 45% by 2034 to ensure debt sustainability. These provisions aim to instil fiscal discipline and mitigate the risk of excessive borrowing.

To enhance oversight and enforcement, the legislation establishes an independent Fiscal Council with the mandate to monitor adherence to fiscal responsibility rules.

This autonomous body will play a crucial role in maintaining budget credibility and macroeconomic stability, ensuring that government expenditure aligns with established fiscal targets.

Additionally, the Act requires the Minister of Finance to seek Parliamentary or Cabinet approval before suspending fiscal rules in response to unforeseen economic conditions or force majeure events.

The amendment also consolidates Ghana’s fiscal management laws under a single legal framework, eliminating redundancies and strengthening enforcement mechanisms. As a result, the Fiscal Responsibility Act, 2018 (Act 982) has been repealed, and the Presidential Fiscal Advisory Council has been dissolved. These changes streamline fiscal governance and centralise oversight under the newly established Fiscal Council.

With the passage of these reforms well ahead of the September 2025 deadline for the IMF-supported programme, the Ministry of Finance has reaffirmed its commitment to restoring fiscal discipline, enhancing transparency, and securing Ghana’s economic resilience.

The government has pledged to ensure full implementation of the new law and will collaborate closely with stakeholders to uphold macroeconomic stability and sustainable growth for the nation.