Need For Government To Maintain Fiscal Discipline
Chapter 13 of the 1992 Constitution gives power to some state institutions to manage public funds. How to operationalize this constitutional provision for efficient service delivery to citizens has been a major concern in our development efforts. The poor checks and controls on politicians and public officials in the country have led to challenges in the economy. The political cycle in Ghana produces a recurring pattern of rapid fiscal expansion, followed by fiscal consolidation and the imposition of expenditure controls to restore the economy back on track. The budget crises in Ghana have been associated with the four-yearly election sequence leading to post-election fiscal crunch. The budget deficit escalates in every election year since 1992, except 2004. The passage of the Fiscal Responsibility Act as well as the establishment of the Fiscal Responsibility and Fiscal Stability Advisory Councils in Ghana to anchor fiscal discipline and ensure prudence in the management of the econom...