2017 Budget IEA backs government decision to establish fiscal council

A statement signed by the Executive Director of the IEA, Mrs. Jean Mensah, noted that the creation of the council will lead to sound financial management if it is allowed to function independently.

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  play Mrs. Jean Mensah, Executive Director, IEA
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The Institute of Economic Affairs (IEA) has said the government decision to establish a fiscal council is "gratifying."

A statement signed by the Executive Director of the IEA, Mrs. Jean Mensah, noted that the creation of the council will lead to sound financial management if it is allowed to function independently.

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"It is gratifying to note that Mr. Ken Ofori-Atta, the Finance Minister, in his budget statement read on, Thursday, 2nd March 2017, noted his government’s intention to adopt the IEA’s policy recommendation of establishing a Fiscal Council,” the IEA said.

"The IEA wants the Council to be given a clear mandate, debt sustainability to ensure that it is freed from time inconsistency problem that leads to deficit bias. 

“The institute is of the firm belief that should a Council be established, equipped and allowed to operate independently; it would lead to the promotion of sound public financial management in Ghana,” the statement said.

Finance Minister Ken Ofori Atta on Thursday said that the creation of the fiscal council will help deal with fiscal slippages and escalating public debt stock.

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“Ghana has been faced with significant, long-term fiscal slippages and an escalating public debt stock leading to a high risk of debt distress, due to the fact that the implementation fiscal policy lacks a transparent institutional arrangement for providing quality fiscal information to the public,” Mr Ofori-Atta said on Thursday during the presentation of Nana Akufo-Addo's first budget.  

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