A former Finance Minister Seth Terkper, is advising the government to tighten the rules of the Public Financial Management Act to cut the country’s budget deficit significantly.
Ghana’s budget deficit has been consistently high, ending 2022 with a gap of about 9.0% of Gross Domestic Product.
Mr. Terkper also wants the government to adopt a comprehensive approach to managing the country’s finances to reduce the high fiscal deficit.
According to him, enforcing the Public Financial Management Law is key to addressing all these financial infractions.
The government is taking some extra measures to limit the amount of debt that can be incurred by any administration.
It has therefore proposed a debt target as part of fiscal reforms under the IMF programme.
But Mr. Terkper tells Joy Business, enforcement of the PMF Law will be the game changer.
“As we continue, I would like to know from government documents if it is a memorandum of economic or financial policy. I’m saying that we do have the provisions; they’re already in the Public Financial Management Act which was passed in 2016 (Act 921) and the budget responsibility Act which you mentioned is an extract from the PFMA”.
“So there’s the need for tightening the rules”, he added.
He further stated the Public Financial Management Law is to regulate the financial management of the public sector by vigorously ensuring that all rules and regulations are adhered to.
“The debt is from borrowing and the borrowing is from your deficit and the deficit is from revenue minus expenditure and this is the purpose of the Public Financial Management Act; to cover this in one loop which you know amended the financial administration act.
Latest Stories
-
I hope to raise money to buy Chelsea at the blind side of the public – Cheddar
1 min -
African Games 2023: Ethiopia dominates distance races on day one, Ghana reach final in three events
3 mins -
Nketiah Foundation Cup 2024: Joma Smart FC win inaugural edition of football tournament
20 mins -
African Games 2023: Ghana to compete in four medal events on day two
23 mins -
Commercial Bank glitch lets customers withdraw millions
31 mins -
Six universities now offer AICPA & CIMA’s CGMA Finance Leadership Program in Ghana
38 mins -
World Health Organization (WHO) Mauritius launches set of health priorities for new two years
1 hour -
7 tips from Kaspersky on what to do if someone tries to hack you
1 hour -
Northern Ghana to experience another bout of dust pollution – Ghana Meteorological Agency warns
1 hour -
Mukuru distributes millions in aid to vulnerable Africans
1 hour -
Kwaku Antwi-Boasiako: Is Anti-LGBT+ Bill more supreme than the 1992 Constitution?
2 hours -
Mahama promises to build university in six new regions
2 hours -
Mahama promises to enhance ‘Okada’ business with electric tricycles, maintains need for legalisation
2 hours -
Ghana’s land litigation concerns presents threat to solar energy projects
2 hours -
African Games 2023: Joseph Commey makes semis; Walid Omar, two others eliminated in boxing event
2 hours