Publications Archive – Policy Analysis

fiscal rules and fiscal council for ghana (press) (1).pdf

Ghana has long struggled with persistent fiscal deficits, macroeconomic instability, and repeated IMF bailouts. To address these issues, the press release recommends entrenching fiscal responsibility through formal fiscal rules and an independent fiscal council. Proposed fiscal rules include a 3% deficit ceiling, a 60% debt ceiling, and a requirement to use borrowing only for investment. The fiscal council should be appointed by Parliament, not the Executive, to ensure independence. It would analyze budget forecasts, monitor fiscal performance, and provide objective assessments to inform policymaking. Integrating these elements into a unified fiscal responsibility framework, with clear enforcement mechanisms, could help Ghana achieve sustainable public finances and avoid future crises.

Dr. John Kwakye

12 Jun 2024

Download

pa - v1 n1 - making a fiscal council work for ghana - country experiences and best practice.pdf