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As government prepares to table the fiscal responsibility law before parliament, the Natural Resource Governance Institute (NRGI) has called for stringent measures that will define the implementation of the law.
The law if passed is expected to introduce targets to reduce fiscal deficit to below 5 percent from 2018 onwards.
Speaking to Citi Business News at the sidelines of a workshop in Accra, an Economic Analyst with the Natural Resource Governance Institute, David Mihalyi observed that the law, if passed, must be backed with sanctions to realize it full impact.
“We had this presentation to discuss this new proposal by the vice president we think that the fiscal rule is good idea, the timing is right and it can help restore fiscal sustainability in the country.
We also discuss how it is going to be legislated. It is going to be very important. The details matter. Fiscal rules works very well in some places, in other places it was not followed, it was abandoned. They were modernized and it lost its purpose,” he said.
Mr. Mihalyi stated that there are examples of countries that passed the law but poorly implemented it.
He suggested that it will be prudent for government to outline the processes that will be used to implement the policy.
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