Fiscal Responsibility Law, Financial Stability Council, Fiscal Council in the Offing

Government is in the process of putting in safeguard measures to ensure the macro-economic gains chalked in the last 21 months are not reversed, Vice President Bawumia has said.

A key component of the measures is the passage of the Fiscal Responsibility Law, by the end of this year to cap the budget deficit not to exceed 5 per cent for a fiscal year, as well as instituting regulatory and advisory bodies to guide government's fiscal and financial sector management.

The Vice President disclosed this when he addressed the Ghana Investment and Opportunity Summit 2018 in London.

The Summit was organized by the Ghana High Commission in the UK, in collaboration with the Ghana Investments Promotion Centre.

"Cognizant of the tendency to backtrack on our progress, Government is putting in place measures to ensure irreversibility of the gains we have achieved so far. To this end, we are implementing structural measures to tackle some of the long-term structural issues. We intend to urge Parliament to pass, by the end of this year, a Fiscal Responsibility law to cap the budget deficit not to exceed 5% for a fiscal year.

"We will also ensure complementary monetary management and establishment of institutional safeguards such as an independent Financial Stability Council, Fiscal Council, and an International Economic Advisory Council", he stated.

The overarching objective, according to Vice President Bawumia, "is to safeguard the financial system, deepen financial intermediation, widen financial inclusion, and position Ghana as a West Africa Financial hub and economy with greater policy credibility."

Source: ISD (Rex Mainoo Yeboah)

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