[ 2014-11-25 ]

Fiscal law, antidote to unrestrained Gov’t spending – Economist
Head of Finance at the University of Ghana
Business School, Dr Godfred Bokpin is calling for
the passage of a fiscal responsibility law to help
check excessive spending by the executive.

A Fiscal Responsibility law would require that
government declares and commits to the fiscal
policy that can be monitored.

Ghana’s total public sector debt stock increased
from Ghc 65.7 billion as of the end of August to
Ghc70 billion as of the end of September.

Dr Godfred Bokpin says the law, when passed, will
help address the recurring economic woes after
elections.

He was speaking in an interview with STARR
BUSINESS on the need to ensure fiscal discipline.

“We are in this situation largely because of the
2012 elections expenditure which were not
necessarily for productivity, so if you spend in
that manner, then you realise that the
inflationary pressures of that expenditure cannot
be unexpected,” Dr Bokpin said.

Dr Bokpin says any support from the IMF must be
complemented with efforts aimed at ensuring
economic stability.

“The IMF is not coming here for transformation.
The goal now is stability but we have to think
beyond that. How do we build on that to ensure
transformation of the economy? How do we build on
that macroeconomic stability which is very
important to preserve our medium-term prospects?
Without macroeconomic stability, we cannot
preserve the medium-term stability.

Source - Starrfmonline

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