Dr Priscilla Twumasi-Baffour, an economist and senior lecturer at the University of Ghana Business School, has commended the government for its decision to review the Fiscal Responsibility Act, describing it as a necessary step towards ensuring sustainable economic management.
She made these remarks while speaking on JoyNews’ *Newsfile* programme on Saturday, 15th March 2025.
Her comments follow the presentation of the 2025 Budget Statement by Finance Minister Dr Cassiel Ato Forson on Tuesday, 11th March.
The budget outlined key fiscal policies, including proposed reforms to strengthen Ghana’s fiscal discipline framework.
Dr Twumasi-Baffour noted that a review of the Fiscal Responsibility Act would enhance transparency and accountability in government expenditure, particularly in the wake of recent economic challenges.
She emphasised that the Act, which was initially introduced to control excessive government spending and borrowing, needs to be strengthened to reflect the evolving economic landscape.
“A well-structured fiscal framework is critical for macroeconomic stability. Reviewing the Act will ensure that we adopt more effective measures to manage deficits, enhance revenue mobilisation, and promote economic resilience,” she stated.
Dr Twumasi-Baffour further highlighted the importance of enforcing fiscal rules to prevent recurrent budget overruns.
She noted that Ghana’s economic recovery depends on prudent financial management, urging policymakers to adopt a balanced approach that prioritises both growth and debt sustainability.
“It is essential that we do not only set fiscal targets but also have mechanisms in place to ensure compliance and accountability,” she added.
The economist also called for greater public engagement in discussions on fiscal policy reforms, stressing that citizen participation is crucial for effective implementation.
As the government moves forward with the review process, she expressed optimism that the revised Fiscal Responsibility Act would serve as a robust tool in Ghana’s efforts to achieve long-term economic stability.
