Fiscal Policy

Ghana’s Fiscal Policy Characterised By Overspending, Structurally Weak Domestic Revenue Mobilisation – IMF
18 May

Ghana’s Fiscal Policy Characterised By Overspending, Structurally Weak Domestic Revenue Mobilisation – IMF

wontumionlineBusiness, , , ,
Ghana’s fiscal policy has been characterised by recurrent periods of overspending, the International Monetary Fund (IMF) has stated in a statement after approving the $3 billion bailout package for Ghana to revive its economy. According to the Fund, past budgets have been marked by overly optimistic forecasts despite the existence of a fiscal council. It explained that the fiscal rules adopted in 2019 lack a debt target and feature an overly complex double operational rules system, with poorly defined escape clauses and no effective enforcement mechanisms. It said “Ghana’s fiscal framework is also weakened by persistent challenges in public financial…
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Fiscal Policy To Remain Constrained In Ghana Due To Elevated Funding Costs – Rand Merchant Bank
08 Feb

Fiscal Policy To Remain Constrained In Ghana Due To Elevated Funding Costs – Rand Merchant Bank

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Rand Merchant Bank is warning of constrained fiscal policy in African countries such as Ghana and Zambia due to elevated costs of funding. The two countries are presently undertaking debt restructuring to bring their debt levels to sustainable levels. In its forecast for the year 2023, the South African based research arm of First National Bank, said it expects further reliance by African countries on multilateral and domestic funding to support the various country deficits. “Fiscal policy will remain constrained across most markets, partly due to elevated costs of funding. Nevertheless, we expect further reliance on multilateral and domestic funding…
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