By Paul Eduarko Richardson
Accra, March 18, GNA – The Institute of Economic Affairs (IEA) Ghana has described the government’s plan to review the Fiscal Responsibility Act by strengthening responsibilities and sanctions as a step in the right direction.
In a press statement copied to the Ghana News Agency, the Institute suggested that the Act include a clause limiting the duration of suspension in emergencies to prevent indefinite suspension, which has been the case since 2020.
The statement outlined IEA’s views on Ghana’s 2025 Budget and Economic Policy presented to Parliament by the finance minister on March 11.
The IEA welcomed the government’s decision to legislate a debt ceiling of 60 per cent, noting that it aligned with the Institute’s longstanding recommendations.
It added that a provision requiring all borrowed funds to be used strictly for investment should be incorporated.
The Institute explained that such a measure would foster economic growth, ensure loans are channeled toward productive purposes, generate resources for future debt repayment, and avert recurring debt crises.
The Finance Minister, Dr. Casiel Ato Forson, presenting the 2025 Budget and Economic Policy, highlighted plans to review several Acts to bolster economic stability and inclusive growth.
Among these is the Fiscal Responsibility Act, 2018 (Act 982), which would be incorporated into a comprehensive Public Management Act aimed at promoting fiscal and debt sustainability and restoring confidence in the economy.
GNA