The Institute of Economic Affairs (IEA) has made a bold call for the establishment of an Independent Parliamentary Budget Office in Ghana, with the aim of strengthening the country’s monetary and fiscal management systems. The IEA believes that such a move would go a long way towards transforming Ghana’s economy, and ensuring the effective assessment and estimation of the cost of government projects and programs.
Speaking at a meeting with various Civil Society Organizations, the Director of Research, Dr. John Kwakye, explained that an Independent Parliamentary Budget Office would differ significantly from the current Fiscal Council in the country. Instead, it would be comprised of independent professionals, and would be tasked with working alongside parliament to assist in its oversight role.
The proposed office, which would be appointed by the Public Services Commission rather than the president, would be similar to the conventional budget office in the United States, the Office of Budget Responsibility in the United Kingdom, and other fiscal councils around the world. It would operate as an independent body, free from executive influence, and staffed by professionals with expertise in finance and economics.
One of the key advantages of an Independent Parliamentary Budget Office, according to Dr. Kwakye, would be its ability to enforce stricter monetary and fiscal management systems in Ghana. By monitoring the government’s spending and borrowing, the office could help to prevent overspending and overborrowing, which are common problems in many developing economies.
The establishment of an Independent Parliamentary Budget Office would also have significant implications for Ghana’s economic development. By ensuring that government projects and programs are accurately assessed and costed, the office could help to prevent wasteful spending and promote more efficient resource allocation. This, in turn, could help to attract investment and stimulate economic growth.
However, there are also challenges that must be overcome in order to establish an Independent Parliamentary Budget Office in Ghana. One of the main obstacles is the need to ensure its independence from the executive, which would require a significant degree of political will and institutional reform. There is also a need to ensure that the office is staffed by professionals with the necessary expertise and experience in finance and economics, which could be a challenge in a country where these skills are in short supply.
Despite these challenges, the IEA’s call for the establishment of an Independent Parliamentary Budget Office in Ghana is an important step towards strengthening the country’s fiscal management systems and promoting economic development. By ensuring greater transparency and accountability in government spending, such an office could help to build trust and confidence in Ghana’s economy, and attract investment from both domestic and international sources.
