The government of Ghana, is in no doubt demonstrating its commitment and determination to avoid the ‘sins’ of the past in the management of her economy.
In order to avert the possibilities of getting back to the path of the fiscal slippages that caused the country to seek policy credibility from the IMF in the year 2015 through the Extended Credit Facility (EFC), the government of President Akufo-Addo has passed the historic Fiscal Responsibility Act, to anchor fiscal discipline and ensure prudence in the management of the economy. The Act establishes both the Fiscal Council and Financial Stability Council.
The Fiscal Council will amongst other responsibilities develop and recommend policies for the maintenance of prudent and sustainable levels of public debt, ensuring that the fiscal balance is maintained at a sustainable level and the management of fiscal risks in a prudent manner, to achieve efficiency, effectiveness and value for money in public expenditure.
The Fiscal Council will also monitor the performance of the government budget with regards to compliance with fiscal rules and targets. These include:
• a budget deficit of not more than 5% of GDP (as provided by law)
• a positive primary balance (as provided by law) and
• a debt to GDP ratio of not more than 65% of GDP
Ghana becomes the only country in sub-Saharan Africa to establish a Fiscal Council. The Fiscal Council will be chaired by Dr. Paul Acquah, former Governor of the Bank of Ghana and former Deputy Director of the Africa Department of the International Monetary Fund (IMF). Other members of Ghana’s Fiscal Council are
Professor Eugenia Amporfu, Dr. Nii Noi Ashong, Professor Augustine Fosu, Dr. Nii Kwaku Sowa, Professor Robert Osei, and Mr. Ali Nakyea.
Additionally, to enhance the stability and soundness of the financial system, the President, Nana Addo Dankwa Akufo-Addo has by Executive Instrument, established a Financial Stability Council. The role of the Financial Stability council is to amongst others: strengthen and reinforce the stability of the financial sector,
acting as an inter-institutional consultative coordination body; Coordinate regulation and supervision at the micro-level by focusing on matters of common concern for the various financial regulators involved in the regulation and supervision of financial entities in Ghana, namely Bank of Ghana (BoG), Securities and Exchange Commission (SEC), National Insurance Commission (NIC) and the National Pensions Regulatory Authority (NPRA); and Evaluate and mitigate financial stability risks by focusing on the timely detection and mitigation of risks to the stability of Ghana’s financial system.
It will comprise the Governor of the Bank of Ghana (Chairman), Deputy Governor, Deputy Minister of Finance, CEO of the National Insurance Commission, Director General of the Securities and Exchange Commission, CEO of the National Pensions Regulatory Commission, and CEO of the Ghana Deposit Protection
Corporation. Ghana also becomes the second country in sub-Saharan Africa to establish a Financial Stability Council after Mauritius.
Historically, Ghana has persistently had a problem with politicians pursuing fiscal policy that is inconsistent with macroeconomic stability (especially during election years). The establishment of the Fiscal Council and Financial Stability Council is therefore to help tie the hands of politicians in ensuring prudent macroeconomic
management.
Source: Peacefmonline.com
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Correction: Kufuor had to take us from HIPC
Hei, Asgil if Akufo-Addo had directly followed the Kufuor Administration, he would have been able to sustain the many positive successes, chalked by the able Administration of President Kufuor in the fiscal space, by the creation of the independent councils. Then, Governance is a continuum. Thus, every Government will encounter one problem or the other from the previous Administration. And the succeeding Government must have the competence to create prudent measures and policies to solve it. Kufour had to take us to HIDPC and Nana doesn't want to take us there again as the policies of Mahama-Administration was doing otherwise. Therefore, it is only prudent for Nana to install and insist discipline in our Financial Space so as to win back our credibility. The question any sane person would want to be answered is whether the creation of the councils is wise in handling the fiscal circumstance Nana came to meet?
@Asgil Just want to find out from u, what are some of these several laws in your opinion need enforcement to ensure write things are done? Can u please read the meaning of these two councils and what they do and see if u can relate them to your supposed already existent laws best known to u.
when people genuinely express their opinion, then cloth you them with political attire. yoooo! we have several laws that need enforcement to ensure write things are done. we don't need council here council there. Prez kuffour ruled without such councils and appointments and yet he didn't take us to IMF. I want repeat it, this govt is burdening national purse with too much appointments and beaurocracies.
No doubt, this is the best Government in recent history. Of course, having benefited from both the positive and negative lessons of the same period. The importance of these councils are far-reaching. The challenge for Ghana though is that we have an almost two-party system where on builds institutions and the other breaks them down; one constructs, the other destroys, one gathers,and the other scatters. Anytime that National Destroyers Corps is able to fleece the electorate, and gets into government, the nation deteriorates. Let's pray for this government!
Who says Ghana is not working again? This is a government who is making GHANA WORKING AGAIN! No onaaaapo policies again. No running to IMF for policy credibility with Akua Donkor and Otu Kornor as members of economic management members. NEVER AGAIN!
There are many elements of the NDC who just write anything for us to feel their mere opposing presence. Has the gentleman Asgil taken the trouble to do value for money analysis as against the benefits Ghana is going to realize from the expertise of the prominent members of the Councils who are purely Ghanaian? You see, our able President has said over and over again that, we can't just be indulging in the folly of doing the same things over and over again and expect different results. Hence, if we want to free ourselves from the stringent policies of the IMF then we have to establish independent Council which is manned by the caliber of experts of the IMF, and I believe, you do appreciate that Mother Ghana has them in abundance. And that is exactly what our President has demonstrated with his prudent Leadership. After all, Dr. Paul Acquah worked at the IMF before. I am confident that the efforts of the President, doing away with the unproductive status quo of always falling on the IMF for help be it policy credibility, structure Adjustment or what have you, this time we are on our own and we will definitely make a positive mark.
ASGIL THE OPPOSITION LEADER. DO YOU UNDERSTAND THE ISSUES INVOLVED?? LEARN TO GET INFORMED BEFORE YOU OPEN YOUR MOUTH. Y3DE NAM NA EYI NAM, WAI.
so Nana Addo is not tired of burdening national purse with numerous appointments. simple economics tell us that we don't need more people to achieve quality results. in fact more people will affect quality delivery