Former Auditor-General Daniel Yaw Domelevo has emphasized the need to empower Ghana’s public auditing institutions to curb fiscal irresponsibility across ministries, departments, and agencies (MDAs).
Speaking at the launch of the 2024 Fiscal Recklessness Index by IMANI Africa and Oxfam Ghana, Domelevo argued that creating an Independent Fiscal Council without bolstering existing institutions would only add financial strain. The report identified the Ministry of Finance as the most fiscally reckless institution, prompting Domelevo to stress the importance of strengthening oversight bodies like the Public Accounts Committee and the Internal Audit Agency for improved financial accountability.
“In Ghana, we often establish new institutions that end up as financial burdens without solving the underlying issues. Instead, we should reinforce the Attorney General’s office, the Auditor General, the Director-General of the Internal Audit Agency, and the Public Accounts Committee,” he stated.
Meanwhile, Finance Minister Dr. Mohammed Amin Adam announced plans to establish an independent fiscal council to ensure Ghana does not exceed sustainable borrowing limits. Speaking at the 2024 IMF and World Bank Annual Meetings, Dr. Amin Adam highlighted the council as a critical step for fiscal responsibility and economic stability in light of Ghana’s recent debt challenges.
The proposed fiscal council, envisioned as an autonomous body, would monitor government borrowing practices and enforce adherence to new debt limits. Dr. Amin Adam explained, “Our domestic debt restructuring was a painful experience for Ghanaians, who sacrificed greatly. This experience has led to demands for fiscal discipline and stability, making it essential to avoid unsustainable debt levels.”
The Finance Minister added that the government will implement structural reforms to enhance fiscal resilience, including enforcing debt limits under existing fiscal responsibility laws and establishing a fiscal council to monitor debt management and compliance with fiscal rules independently of government control.