IFS Advises Ghanaian Government on Realistic Budget Targets for Fiscal Credibility

The IFS urges the Ghanaian government to set realistic budget targets to improve fiscal credibility, highlighting a history of revenue forecast overestimations. The institute cautions against excessive international borrowing and suggests exploring alternative economic strategies, emphasizing the importance of maintaining low fiscal deficits for long-term stability.

The Institute for Fiscal Studies (IFS) has strongly advised the Ghanaian government to establish realistic budget targets in order to enhance its fiscal credibility. The think tank has underscored the critical importance of a credible budget for effective financial management and overall economic stability. Such credibility is viewed as a foundational element for the trustworthiness of the nation’s financial policies, which affects both domestic and international stakeholders.

In summary, the IFS emphasizes the necessity for the Ghanaian government to adopt realistic budgetary expectations to reinforce fiscal credibility and avoid historical pitfalls associated with overestimated revenue projections. The institute also advocates for alternative economic strategies and caution against excessive borrowing, which could jeopardize future fiscal stability. Implementing these recommendations could pave the way for a more secure financial future for Ghana.

Original Source: www.gbcghanaonline.com