Fiscal Policy

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

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

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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