2025 Budget: Government to clear salary arrears, enforce procurement laws to curb waste
Finance Minister Dr Cassiel Ato Forson has outlined a plan to clear outstanding salary arrears and enforce strict procurement laws to curb financial mismanagement.
He made this announcement while presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025.
Addressing lawmakers, Dr Forson described the budget as a roadmap for stabilising Ghana’s economy under President John Dramani Mahama’s administration, which took office on January 7, 2025.
He noted that weaknesses in public financial management have worsened economic instability, making urgent reforms necessary.
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He disclosed that 321 pharmacists employed since June 2023 have not been paid, calling the situation unacceptable.
“We will take urgent steps to remedy this immediately,” he assured, adding that prompt salary payments will be a priority going forward.
Beyond salary arrears, Dr Forson said the government will strictly enforce Ghana’s Public Financial Management Act and Public Procurement Act, arguing that non-compliance has contributed to widespread waste and inefficiencies.
He announced that all government contracts and procurement processes will now be tied directly to budget allocations, with Parliament required to approve all major expenditures.
“The days of reckless spending and financial indiscipline are over,” he stated.
“We will link public procurement to budgetary provisions, impose sanctions for violations, and conduct nationwide headcounts to eliminate payroll fraud.”
He explained that this move reflects the concerns raised at the National Economic Dialogue held from March 4 to 10, 2025, where participants called for stronger financial oversight and tighter control over public spending.
Dr Forson assured Parliament that while the measures will be strict, they will also ensure that funds are available for critical sectors.
He urged Parliament to support the budget, describing it as a necessary step towards restoring economic stability.
