By D.I. Laary
Accra, Aug. 29, GNA – IMANI Africa and the International Institute for Sustainable Development (IISD) have called for sweeping reforms to Ghana’s Fiscal Council, warning that weak implementation could undermine economic credibility and public trust.
The two policy think tanks say the Council, established under Ghana’s Public Financial Management (Amendment) Act, 2025, must be more than a symbolic watchdog.
They argued that its success depended on operational independence, technical capacity, and political space to act.
It therefore urged sweeping reforms to Ghana’s Fiscal Council, expanding its mandate, boosting technical capacity, and formalising processes, to build credibility, enhance transparency, and anchor fiscal discipline as the country works to restore economic stability and trust.
Speaking at a policy dialogue in Accra on the theme “Implementing Ghana’s Fiscal Council: Design Choices Leveraging the Legal Framework to Strengthen Fiscal Institutions,” Mr. Franklin Cudjoe, President of IMANI Africa, said the Council must be empowered to deliver credible oversight.
“Smart rule design is not enough. Institutions must be empowered to deliver credible oversight,” he said. “Credibility hinges on operational independence, technical capacity, and political space to act.”
The Fiscal Council was created to enhance budget discipline and promote fiscal sustainability.
However, IMANI and IISD cautioned that without proper implementation, the Council risked becoming a ceremonial body rather than a driver of sound fiscal governance.
In a joint set of recommendations, the two organisations outlined three key pillars for reform: Foundational Decisions, Operational Requirements, and Institutional Consolidation.
Under “Foundational Decisions,” IMANI and IISD recommended expanding the Council’s role beyond advising the executive.
They proposed that the Council support Parliament with independent fiscal analysis, improve public communication, and ensure that board members were selected based on technical expertise rather than political loyalty.
“Such steps are critical to winning public trust and enhancing the body’s independence,” the think tanks noted.
On “Operational Requirements,” they stressed the need to build strong technical foundations. This includes hiring qualified research staff, securing access to timely and reliable fiscal data, and clearly defining the Council’s role and timelines within Ghana’s budget cycle.
Without these, they warned, the Council risked becoming a token institution.
The final pillar, “Institutional Consolidation,” urges the formalisation of the Council’s analytical and engagement processes to ensure transparency and policy relevance.
Making its outputs accessible to Parliament, civil society, and the public, they argued, would elevate the Council’s relevance and prevent marginalisation in the policy space.
“A fiscal council without information is a toothless bulldog,” Mr. Cudjoe said.
He noted that fiscal councils across Africa remained limited, noting that only three; Uganda, Kenya, and South Africa, were officially recognised by the International Monetary Fund, and all operated as parliamentary budget offices.
“We must learn from regional peers but adapt to our own political economy,” he added.
Ghana’s fiscal challenges are deep-rooted. The country recorded a 3.25 percent deficit in 2024, against a target surplus of 0.5 percent. Off-budget commitments equal to four percent of GDP, and oversight of more than 175 state entities, complicate accountability.
“Rules alone cannot anchor stability if spending remains opaque and fragmented,” Mr. Cudjoe warned.
IMANI and IISD recommended ensuring the Council’s independence through a transparent board selection process, stable funding, and guaranteed access to fiscal data.
They also urged the Council to publish regular reports, engage Parliament, and communicate with the public and investors to build credibility.
The think tanks further proposed that Parliament introduced a technical vetting mechanism for appointments to the Council, and that the Ministry of Finance institutionalise cooperation protocols to ensure data access.
“Every cedi spent without oversight translates into fewer classrooms, clinics, or roads for ordinary Ghanaians,” Mr. Cudjoe said, highlighting the human cost of fiscal mismanagement.
Ghana’s recent debt crisis and ongoing struggles with fiscal stability have underscored the need for independent institutions to hold government accountable for spending and borrowing decisions.
IMANI and IISD stressed that strengthening the Fiscal Council was a vital step toward avoiding the boom-and-bust cycles that have plagued the country for decades.
“If we get this right, Ghana can set a benchmark for fiscal responsibility in West Africa. If we fail, the Council risks becoming another forgotten institution,” Mr. Cudjoe said.
GNA
Editing by D.I. Laary/Christian Akorlie