We will set up Independent Value for Money Office to check wasteful spending – Ato Forson

The Finance Minister designate, Dr. Cassiel Ato Forson has disclosed that government will form an Independent Value for Money Office to help cut waste in the public sector.

Answering questions before the Appointment’s Committee of Parliament on January 13, 2025, he stressed that wasteful expenditure is the bane to Ghana’s economy.

“No one can convince me that our budgets have no 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 deficit, in the end, the outcome is haircut”, he said.

He explained that the Independent Value for Money Office will work parliament to check government expenditure to prevent overspending.

“Some of the things we will do from the expenditure side is the establishment of the Independent Value for Money Office so that parliament will be able to set up a ceiling for government contract that must go through independent value for money analysis”, he reiterated.

He pointed out that such a process will limit abuses in the procurement systems which open the door for wasteful expenditure.

Dr. Forson added that government will work at improving the ratio of domestic revenue to GDP to 18 percent from the current 12 to 14 percent.

Providing some insights, he stated that there is no reason to introduce new taxes when financial waste in the public sector is not removed.

He pointed out that limiting corruption and wasteful expenditure will provide enough fiscal space for government to embark on economic development.

According to him, government must be seen to rationalize its expenditure to encourage the private sector invest and expand their operations.

“Why are we always talking about revenue? We must also look at the expenditure and cut the waste”.

Source: myjoyonline.com