Gov’t to establish Fiscal Council – Finance Minister

Government will initiate the process towards the establishment of a Fiscal Council that will adopt and implement rules to anchor fiscal policy implementation, Finance Minister Ken Ofori Attah has said.
He revealed this on Thursday when presenting the 2017 and maiden budget of the Akufo-addo government on the floor of parliament.
According to him, ”Ghana has been faced with significant, long-term fiscal slippages and an escalating public debt stock leading to a high risk of debt distress, due to the fact that the implementation fiscal policy  lacks a transparent institutional arrangement for providing quality fiscal information to the public.”
He added that the country lacks a mechanism for ensuring accountability in implementing optimal fiscal policies to guarantee the stability of the system, and an institution to ensure the credibility of fiscal projections provided by the Government hence the Fiscal council which will contribute to the  accountability of Government.
The finance minister explained that the fiscal council shall be  responsible for setting up medium-term fiscal policy anchors to guide fiscal policy as well as monitor compliance.
The principal objectives for the formation of the Fiscal Council will be to ensure the credibility of our fiscal projections, set up medium-term fiscal policy anchors to guide fiscal policy, and monitor compliance of fiscal policy rules.
”Legal backing will be given to the Fiscal Council through an amendment of the Public Financial Management Act, 2016 (PFMA), Act 921, to inter alia capture all the elements of a fiscal responsibility law” he said.

Source:otecfmghana.com