Fiscal indiscipline resulting from a lack of adherence to fiscal rules has for a long time been the biggest cause of persistent macroeconomic instability and mounting public debt stock in Ghana. There is growing interest in establishing independent fiscal councils across the globe and that debate was recently ignited in Ghana. As part of its efforts to promote sound public financial management in Ghana, the IEA in 2014 undertook extensive research to examine the role of fiscal policy rules in improving fiscal management. The outcome strongly recommended the establishment of an independent Fiscal Council in Ghana to stem the persistent large fiscal slippages.
The Minister of Finance in his 2017 Budget Statement made a strong commitment to fiscal discipline by indicating his government’s intention to establish a Fiscal Council in line with the IEA’s recommendation. The effectiveness of Fiscal Councils hinges on several factors, including being granted full autonomy within the scope of their mandate and freedom to disseminate their analysis. The level of political commitment to a medium-term fiscal goal is also critical to the success and effectiveness of a Fiscal Council.
This roundtable will provide insights and guidance as to how to improve fiscal performance through fiscal councils based on experiences and best practices across the globe. It is our hope that the new administration will consider the recommendations and policy proposals flowing from the IEA study.
Attendance is by invitation only.