The Ministry of Finance has thrown its weight behind the creation of a credible, independent Fiscal Council, describing it as critical to Ghana’s efforts to entrench fiscal discipline and secure long-term macroeconomic stability.
Speaking at a policy round-table organized by the International Institute for Sustainable Development (IISD) and the IMANI Center for Policy & Education, Chief Director of the Ministry, Patrick Nomo, stressed that the new Council will help break Ghana’s recurring cycle of fiscal slippages.
“When it comes to the subject of fiscal councils and fiscal rules, we are all aware that it sits at the very centre of our quest to ensure that we develop in a very sustainable way, and that we don’t have the situation where we do well, and then due to various factors, we have to go back and restart again,” Mr. Nomo said, speaking on behalf of Finance Minister Dr. Cassiel Ato Forson.
The Council, to be established under the Public Financial Management (Amendment) Act, 2025, will monitor and advise on fiscal performance. It will also ensure compliance with newly set fiscal rules, including a surplus target of at least 1.5% of GDP and a public debt ceiling of 45% of GDP by 2034.
Mr. Nomo acknowledged that previous attempts at fiscal councils faltered due to poor data systems, political economy pressures, and weak institutional coordination. He warned that without reliable and timely data, the Council’s mandate would be undermined.
“The fiscal council is made up of very knowledgeable people, but if they don’t get the data they require, they will have challenges in playing their role. It is very easy to set fiscal rules, but if we don’t have a systematic way of collecting data, the fiscal council will struggle,” he cautioned.
Experts at the roundtable emphasised that ensuring the Council’s independence, credibility, and access to quality data will be essential for its effectiveness. A robust Fiscal Council, they argued, could improve budget management, strengthen debt sustainability, and restore investor confidence.
Ghana’s recent history of debt distress has underscored the urgency of stronger institutional anchors. A well-designed Fiscal Council, stakeholders noted, could ensure fiscal policy not only curbs excesses but also supports critical investments in education, health, and infrastructure laying a sustainable pathway for growth.
