Finance Minister to GRA Board: Govt faces significant fiscal constraints with tight financing conditions

The Finance Minister, Dr Cassiel Ato Forson has told the newly inaugurated board of the Ghana Revenue Authority (GRA) that they assume the mantle at a time when the government faces significant fiscal constraints, with tight financing conditions, limited access to the capital market.

Dr. Forson emphasised that in the face of these constraints, the government’s number one fiscal priority for 2025 and the medium term is to optimise domestic revenue mobilisation.

He revealed that government has programmed to increase revenue collection by at least 0.6 percentage points of GDP each year, targeting a primary fiscal surplus of 1.5% of GDP by 2025 and reducing the external debt service-to-revenue ratio from 28% in 2022 to 18% by 2028.

He cited the recent withdrawal of USAID funding — amounting to over US$78 million in health and US$156 million in economic growth and education programmes — as a stark reminder of the need for a resilient domestic revenue system.

Speaking at the inauguration ceremony in Accra, Dr. Forson expressed his gratitude to His Excellency, President John Dramani Mahama, for assembling what he described as a “distinguished team of esteemed and accomplished individuals” to steer the affairs of the GRA.

“This is a defining moment,” the Minister noted. “You assume this mantle at a time when the government faces significant fiscal constraints, with tight financing conditions, limited access to the capital market following the debt restructuring programme, and dwindling project and programme grants from development partners.”

He added “The Ghanaian public must have unwavering confidence in GRA’s commitment to fairness and ethical conduct,” he said. “Revenue lost through corruption translates to unbuilt schools, unpaved roads, and lives adversely affected by inadequate healthcare and poor sanitation.”

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