Establish fiscal council to check excessive spending – IMF to government

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF) has called on the government to set up a council to overlook macroeconomic stability and ensure prudent management of government fiscal policy in Ghana.

According to her, the members of this council should be independent non-partisan technocrats who can counsel the government against excessive spending.

“We do need to have anchors and then stick to that. Yes, the two notes of caution. One, we do need to have anchors and then stick to them. For Ghana, what we are proposing is 55% net present value debt to GDP and 18% max the share of debt service into government revenues. Anchor your situation in a clear, stable manner,” Kristalina Georgieva said in an interview on Accra-based Citi TV.

She added that, “And two, we recommend that Ghana takes a very serious look at how the fiscal situation in the future can be stable. So we don’t go up and down again. And we are recommending fiscal council, reputable people, independent, able to say objectively this line of spending, yes and this one, no.”

Kristalina Georgieva also emphasized the need for government to build a strong fiscal and monetary measures that can resist global financial pressures while encouraging long-term growth.

“The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country. We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people”, she stressed.

EAN/MA

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