News:
July 27, 2026
Deputy Finance Minister Thomas Nyarko Ampem has described the introduction of the Commitment Authorization system as a game-changer for Ghana’s fiscal management, insisting it is the single most effective policy for instilling discipline in the country’s finances.
Speaking on TV3’s The Key Point programme on Saturday, Mr. Ampem defended the government’s expenditure control mechanisms, contrasting the current system with the challenges faced by previous administrations.
According to the Deputy Minister, the lack of such a system in the past left former Finance Ministers, including Ken Ofori-Atta and Dr. Amin Adam, exposed to unexpected liabilities.
“One can accuse the previous Finance Minister, particularly Ken Ofori-Atta, and Dr. Amin Adams, for all that they did, but there is a limit to that because at the time there was no Commitment Authorization,” Mr. Ampem explained. “Institutions were getting into contracts that the Finance Minister was not aware of, or did not have a budget for, only to be bombarded with bills to pay. Finance Ministers were forced to contend with liabilities they did not prepare for.”
He detailed that the government successfully amended the Public Financial Management (PFM) Act to mandate that all state entities secure authorization from the Finance Minister before committing to any expenditure.
“All that the Finance Minister looks out for is your budget and your ability to fund the procurement you want to embark on,” he stated.
Strict Fiscal Targets
Mr. Ampem highlighted the stringent requirements now in place, noting that the PFM Act has been further amended to include a requirement to maintain a 1.5% primary surplus on a commitment basis. He warned that failure to achieve this target could lead to censure for the Finance Minister.
“If the Finance Minister would be censured for breaching that act, but he does not know what you are doing at your various Ministries, Departments, and Agencies (MDAs), which will feed into the kind of requirement that we have to meet, then we have to have a handle on it,” he asserted.
Curbing Waste and “Soft” Spending
The Deputy Minister revealed that the policy has already yielded significant savings. He noted that in the first year of its introduction, the Ministry rejected requests for the purchase of vehicles amounting to GHS 1 billion.
Furthermore, Mr. Ampem raised concerns about the misuse of donor funds and loans from institutions like the World Bank. He noted that such funds are often misappropriated for what he termed “soft things”—including vehicles, conferences, travel, and consultancy fees—rather than the actual projects for which they were contracted.
“Somehow, people think they are free money, even though the state would pay for them in the long run,” he lamented.
To address this, he disclosed that the Finance Ministry has held meetings with the World Bank to repurpose most loans to eliminate waste and ensure value for money.
“Not much is channeled to the actual project for which the loans were contracted,” he said, emphasizing the need for strict oversight over all state expenditures.
Dominic Shirimori/Ghanamps.com