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Dr. Bawumia kicks against fiscal indiscipline; outlines stricter amendment to Fiscal Responsibility Act

Local News

24 day(s) ago
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The Vice President and Flagbearer of the NPP, Dr. Mahamudu Bawumia has kicked against fiscal indiscipline, which he says is a major contributory factor to macroeconomic instability.

Addressing the nation on Wednesday February  7, 2024 to unveil his policy and priorities for the nation, Dr. Bawumia said if elected President by Ghanaians, one of his main priorities will be to ensure sustained macroeconomic stability by ensuring fiscal discipline.

He outlined a number of measure  he will take as President, which included amending the Fiscal Responsibility Act as well ad partnering thr private sector to fund projects, in order to tighten government spending   

"A major goal of my government would be to attain and sustain macroeconomic stability with low inflation, low interest rates, exchange rate stability and low budget deficits," Dr. Bawumia said.

"To sustainably reduce the budget deficit and interest rates, my government  will enhance fiscal discipline through an independent Fiscal Responsibility Council,  enshrined in the Fiscal Responsibility Act, 2018 (Act 982)."

"The Fiscal responsibility Act will also be amended to add a fiscal rule that requires that budgeted expenditure in any year does not exceed 105% of the previous years tax revenue. This will prevent the experience of  budgetary expenditures based on optimistic revenue forecasts which don’t materialize." Dr. Bawumia added.  

Dr. Bawumia added that his government will reduce the fiscal burden on government by leveraging the private sector to undertake major projects in special arrangement, to free government from excessive spending.