Ato Forson: This is why the Finance-Minister designate wants to establish a Debt Management Office

The Minister-designate for Finance Dr Cassiel Ato Forson has advocated for the establishment of a dedicated debt management office to address inefficiencies in the country's fiscal management.  

Responding to a question from Minority Leader Alexander Afenyo-Markin about his stance on tax revenue and fiscal policy, Dr Forson clarified, “We do not necessarily have to raise tax revenue by increasing the tax rate.”

He emphasised the need for a strategic approach to taxation and criticised the lack of transparency in past tax exemption policies, particularly those tied to the One District, One Factory (1D1F) initiative.  

Dr Forson highlighted instances where his insistence on fiscal scrutiny saved the nation significant sums.

“When tax exemptions for 1D1F were introduced, we were initially called upon to exempt approximately $458 million. My efforts, along with colleagues from the Finance Committee, reduced this figure to about $100 million, saving the nation $358 million,” he stated.  

The Minority Leader pressed Dr Forson on whether his opposition to the exemptions was politically motivated, to which Dr Forson firmly responded, “It was not political. It was about ensuring that Ghana’s resources were used judiciously. Those funds could have been used for critical infrastructure like the Accra-Kumasi Road.”  

Dr Forson further argued that a centralised Debt Management Office would enable the government to better monitor and manage fiscal policies, preventing reckless spending and ensuring accountability.

He urged Parliament to support the creation of such an office, citing the need for greater transparency and fairness in tax policy and exemptions.