The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has welcomed a call by the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva on the government to set up a Fiscal Council to overlook macroeconomic stability and ensure prudent management of government fiscal policy in Ghana.
Dr John Kwakye says a Fiscal Council is an important vehicle for entrenching fiscal discipline in Ghana.
“The IMF call for an independent Fiscal Council is a good call that must be welcomed by all parties. The FC is an important vehicle for entrenching fiscal discipline in Ghana,” he wrote on his X platform while reacting to the call by the IMF Boss.
Madam Kristalina Georgieva had explained that the members of this council should be independent non-partisan technocrats who can counsel the government against excessive spending.
“We do need to have anchors and then stick to that. Yes, the two notes of caution. One, we do need to have anchors and then stick to them. For Ghana, what we are proposing is 55% net present value debt to GDP and 18% max the share of debt service into government revenues. Anchor your situation in a clear, stable manner,” she said.
She added that, “And two, we recommend that Ghana takes a very serious look at how the fiscal situation in the future can be stable. So we don’t go up and down again. And we are recommending fiscal council, reputable people, independent, able to say objectively this line of spending, yes and this one, no.”
Kristalina Georgieva also emphasized the need for government to build a strong fiscal and monetary measures that can resist global financial pressures while encouraging long-term growth.
“The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.
“We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people”, she told Accra-based Citi FM during her visit to Ghana.