Vice President Dr Mahamudu Bawumia has announced that government will soon pass a fiscal responsibility law. 

He said this is to ensure fiscal discipline in government expenditure and to safeguard the public purse.

Dr Bawumia who also heads the Economic Management Team said government also intends to implement measures to tackle some of the long-term structural issues to ensure the irreversibility of the macroeconomic gains made so far.

Speaking at the maiden US-Ghana Business Forum in Accra on Thursday, he said which included the US Secretary for Department of Commerce, Wilbur Ross, some members of the US government’s Presidential Advisory Council as well as CEOs of over 60 American companies.

“I understand that there are concerns in the investor community about fiscal discipline post the conclusion of Ghana’s International Monetary Fund (IMF) programme.

“But let me assure you that we are committed to maintaining fiscal discipline for our own sake. As a result, as we have stated before coming into government, we are going to implement structural measures to tackle some of the long-term structural issues,” he said.

Some of the measures, according to Vice President include the passage of a fiscal responsibility law to cap the budget deficit not to exceed 5 percent for a fiscal year from 2019 along with limits for the debt to GDP ratio.

“As part of the new law, we will establish an independent Fiscal Council to oversee the implementation of fiscal policy” Dr Bawumia added.

“As we lay a solid macroeconomic foundation for businesses and the private sector to grow, we have not lost sight of key strategic elements that hold the greatest potential to anchor the investments we desire.”