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Government to tie the hands of politician to safeguard the economy

Vice-President of Ghana, Dr. Mahamadu Bawumia, has indicated that law will soon be passed to prevent politicians from sacrificing prudent economic management on the altar of political expediency.

Speaking at the opening ceremony of “The Future of Work in Sub-Saharan Africa” Conference yesterday in Accra, Dr. Bawumia said the lessons learned by the Akufo-Addo government since it assumed office 23 months ago had shown the urgent need to pass such a law to safeguard Ghana’s economic gains.

“This Conference is about the future of work in the context of the 4th Industrial Revolution but quite frankly, what we have come to understand is that there will be no future to work in if we don’t have sustained macroeconomic stability underpinned by fiscal and debt sustainability.

“In this regard the President, Nana Addo Dankwa Akufo-Addo has decided that we should not leave fiscal and debt sustainability at the discretion of the politicians. Just as we passed a law to anchor the independence of the Central Bank, we are also going to pass a law to anchor fiscal and debt sustainability; this is the Fiscal Responsibility Law.

“This Fiscal Responsibility Law will cap the fiscal deficit and will also cap the Debt-to-GDP ratio so that we give assurance to investors as we go forward that Ghana will behave fiscally very responsibly no matter which government comes into office” the  Vice-President explained.

Dr. Bawumia has however assured that “by the end of this year we are setting up an independent Fiscal Council as well as an independent Financial Stability Council.

This has never been done by any government since independence and this law as well as the institutions that we will set up will tie the hands of politicians, including ourselves, to maintain fiscal and monetary discipline going forward.”

 

 

BY: Adnan Osman

 

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