The Bank of Ghana (BoG) has highlighted the importance of maintaining strict fiscal discipline to enhance economic confidence.
This statement comes at a time of increasing concerns about the country’s economic stability.
In its Monetary Policy Committee press release on Monday, the BoG stated that “On fiscal policy, expenditures outpaced revenue growth in the first quarter, reflecting the frontloading of IPP arrears payments.”
“Maintaining strict fiscal discipline for the rest of the year will be crucial to strengthen confidence in the economy.”
The BoG further explained that fiscal discipline is essential in preventing budget deficits from getting out of control, which could lead to inflation and other economic problems.
“It also helps to maintain investor confidence, which is crucial for attracting foreign investments.”
Source: Adomonline