Renowned banking and financial analyst Dr. Richmond Atuahene has cast serious doubt on the credibility of the government’s promise to establish an Independent Fiscal Council as another means of controlling debt accumulation.
Minister for Finance, Dr. Cassiel At Forson, at a post-budget workshop for Members of Parliament last month, announced that the government, among other measures, will set up an Independent Fiscal Council.
Dr. Ato Forson says the role of the council will be to ensure that the government is fiscally disciplined and puts borrowing under control.
However, Dr. Atuahene argues that considering Ghana’s governance and political space, no institution or body touted as independent in Ghana is truly operating independently without political influence.
The financial analyst made this case when he appeared before Ghana’s Constitutional Review Committee. Dr. Atuahene was making strong arguments for the country’s growing debt crisis to be tackled through a constitutionally entrenched debt ceiling that future administrations cannot easily override.
“The one I heard that hurt me was, ‘I will set up an Independent Fiscal Council’. There is no independent body in this country. It is all served by political people,” Dr. Atuahene said.
Dr. Atuahene further casts doubt on the secondary laws purporting to control debt. He says such laws, such as the Public Financial Management Act and Fiscal Responsibility Act, are frequently suspended or sidestepped at the will of politicians.
He is, therefore, convinced that such secondary laws have proven to be weak because they can be set aside by any government. In his view, when debt control measures are entrenched in the primary law of the country, which is the constitution, politicians and government officials cannot override it.
He further insists that only an entrenched provision in Ghana’s Constitution, setting clear and enforceable borrowing limits, can provide a sustainable framework for managing the country’s debt levels and insulating public finances from political manipulation.
Dr. Atuahene’s remarks come amid mounting public concern over Ghana’s ballooning public debt, which led to a domestic debt exchange programme and tough fiscal adjustments under an IMF bailout programme.
His submission adds to growing calls from civil society and financial experts urging the Constitutional Review Committee to prioritize stronger fiscal governance mechanisms in any future constitutional amendments.
