[ 2017-05-09 ]

Lack of fiscal council is the cause of large deficits over the years

Set up fiscal council for fiscal sustainability - IEA
The Institute for Economic Affairs is calling on
government to set up a fiscal council which will
provide an independent assessment of macroeconomic
and revenue forecasts to ensure fiscal
sustainability in the country.

According to adjunct research fellow of the IEA,
Dr. Eric Osei-Assibey, the fiscal council will
serve as a watchdog to make sure that government
does not deviate from the course of fiscal
sustainability.

Speaking at a policy forum on making Ghana’s
fiscal policy council work, Dr. Eric Osei-Assibey
stated that the lack of a fiscal council is the
cause of large deficits over the years.

“The fiscal council looks at government data
[to] see if the government is in line with its own
fiscal policy objectives. It either commends or
reprimands government about what it is doing.”

He added that “the fiscal council will be an
independent council that will ensure monitoring
and enforcement procedures to fiscal
sustainability.”

The institute stated that forecasts produced by
the council can serve as a neutral baseline to
assess the fiscal cost and macroeconomic impact of
policy proposals.

They added that it will also play the same role as
the monetary policy committees, deciding on
deficits and the evaluation of public debt.

Source - Ghanaweb.com

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