Accra: IMANI Africa and the International Institute for Sustainable Development (IISD) have called for sweeping reforms to Ghana's Fiscal Council, warning that weak implementation could undermine economic credibility and public trust. The two policy think tanks say the Council, established under Ghana's Public Financial Management (Amendment) Act, 2025, must be more than a symbolic watchdog. They argued that its success depended on operational independence, technical capacity, and political space to act.
According to Ghana News Agency, IMANI and IISD urged reforms to expand the Council's mandate, boost technical capacity, and formalize processes to build credibility, enhance transparency, and anchor fiscal discipline as the country works to restore economic stability and trust. Speaking at a policy dialogue in Accra on the theme 'Implementing Ghana's Fiscal Council: Design Choices Leveraging the Legal Framework to Strengthen Fiscal Institutions,' Mr. Franklin Cudjoe, President of IMANI Africa, emphasized the need for credible oversight. He noted that credibility hinges on operational independence, technical capacity, and the political space to act.
The Fiscal Council was created to enhance budget discipline and promote fiscal sustainability. However, IMANI and IISD cautioned that without proper implementation, the Council risked becoming a ceremonial body rather than a driver of sound fiscal governance. In their joint recommendations, the organizations outlined three key pillars for reform: Foundational Decisions, Operational Requirements, and Institutional Consolidation.
Under 'Foundational Decisions,' they recommended expanding the Council's role beyond advising the executive. The proposal includes supporting Parliament with independent fiscal analysis, improving public communication, and ensuring board members are selected based on technical expertise rather than political loyalty, which are seen as critical steps for gaining public trust and enhancing the body's independence.
Regarding 'Operational Requirements,' they stressed the importance of building strong technical foundations, including hiring qualified research staff, securing access to timely and reliable fiscal data, and clearly defining the Council's role and timelines within Ghana's budget cycle. Without these measures, they warned, the Council risked becoming a token institution.
The final pillar, 'Institutional Consolidation,' calls for formalizing the Council's analytical and engagement processes to ensure transparency and policy relevance. They argued that making outputs accessible to Parliament, civil society, and the public would elevate the Council's relevance and prevent marginalization in the policy space. Mr. Cudjoe highlighted the limited recognition of fiscal councils across Africa, drawing comparisons with Uganda, Kenya, and South Africa, which have fiscal councils officially recognized by the International Monetary Fund and operate as parliamentary budget offices.
Ghana faces significant fiscal challenges, with a recorded 3.25 percent deficit in 2024 against a target surplus of 0.5 percent. Off-budget commitments equal to four percent of GDP and oversight of more than 175 state entities complicate accountability. Mr. Cudjoe warned that rules alone cannot anchor stability if spending remains opaque and fragmented.
IMANI and IISD recommended ensuring the Council's independence through a transparent board selection process, stable funding, and guaranteed access to fiscal data. They also urged regular reporting, engagement with Parliament, and communication with the public and investors to build credibility. Further proposals included introducing a technical vetting mechanism for appointments to the Council and institutionalizing cooperation protocols with the Ministry of Finance for data access.
Highlighting the human cost of fiscal mismanagement, Mr. Cudjoe noted that every unmonitored cedi spent translates into fewer resources for public services. The think tanks stressed that strengthening the Fiscal Council is essential to avoid the boom-and-bust cycles that have plagued Ghana for decades, arguing that successful reform could set a benchmark for fiscal responsibility in West Africa.