The Constitution Review Committee (CRC) has proposed amending the 1992 Constitution to regulate public debt accumulation, complementing Dr. Ato Forson’s Bank of Ghana Act.
As part of its recommendations presented to the President, the CRC report outlines roles for Parliament and the Ministry of Finance, including a public debt ceiling in the Constitution to prevent governments from overborrowing.
According to the report, Parliament is to legislate a framework to manage public debt and ensure responsible borrowing.
“Parliament shall enact legislation establishing a public debt management framework, including the adoption of one or more debt anchors or fiscal sustainability rules, for the purpose of ensuring prudent, transparent, and sustainable public borrowing, without prescribing any specific debt management tool in the Constitution.”
CRC Report
The report also suggests that the Minister of Finance provide regular reports to Parliament on public debt management.
“The Minister responsible for Finance shall submit to Parliament, at such intervals and in such form as prescribed by law, comprehensive information relating to public debt, including:
(a) the terms, amounts, maturity profiles, and purposes of all loans and guarantees contracted or issued by the State; and
(b) any material variation, restructuring, or assumption of public debt obligations.”
CRC Report
According to the report, all contingent liabilities of the State shall be disclosed to Parliament, including fiscal risks arising from guarantees, indemnities, Public-Private Partnerships (PPP), and the obligations, liabilities, or exposures of State-Owned Enterprises (SOEs) and State-controlled joint ventures.
Furthermore, such disclosure shall be made in a manner sufficient to enable Parliament to exercise informed oversight and to assess the fiscal risks and potential impacts of those liabilities on the public finances.
Dr Ato Forson’s Earlier Bill to Parliament
On December 18, 2025, the Parliament of Ghana approved amendments to the Bank of Ghana Act, imposing stricter limits on central bank financing of the government to safeguard its independence.
The new Bank of Ghana (Amendment) Bill, 2025, prevents the central bank from buying government securities on the primary market and redefines emergency provisions that previously allowed officials to bypass a 5% lending cap tied to the prior year’s revenues.
The amended bill restricts the Bank of Ghana’s issuance for emergencies such as natural disasters, presidentially declared crises, or public health emergencies.
This reform bill, pioneered by the Finance Minister, stems from his declaration of financial mismanagement at the Ministry and criticism over heavy central bank support during the COVID-19 pandemic and its aftermath.
During the aftermath of the pandemic, Ghana lost access to international capital markets, inflation surged, and the Bank of Ghana posted negative equity after extending overdrafts and other assistance to manage fiscal imbalances.
The amended law will bar all forms of loans to the government except under exceptional, well-defined parameters such as temporary revenue shortfalls. Such advances will carry repayment terms, face capped limits, and require parliamentary approval.
The new law, in line with the IMF support program, provides board eligibility requirements and audit oversight. According to Dr. Cassiel Ato Forson, reforms will “strengthen the central bank” while maintaining its autonomy.
The CRC hopes to complement and officially represent the public debt accumulation cap, extending borrowing limits beyond the Bank of Ghana to include the international market.
Complementary Roles – Bill and CRC proposal
Though both the CRC proposed amendment and the Bank of Ghana (Amendment) Bill 2025 have different primary functions, they both seek to present a framework to regulate governments’ borrowing and debt accumulation.
The CRC report widens the scope beyond just Bank of Ghana lending to the government to include all borrowings and institutes direct parliamentary oversight over the Ministry of Finance on public debt.
If the CRC recommendation is accepted, as the Bank of Ghana (Amendment) Bill 2025 has been, successive governments will be forced to be disciplined, or else it will be an infringement on the 1992 Constitution.
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