The IFS has called on the government to set achievable budget targets to enhance fiscal credibility. Historical overestimations in revenue projections have resulted in consistent shortfalls, undermining trust in financial policies. The IFS further advises against hasty borrowing and suggests exploring alternatives such as natural resource development to support economic growth.
The Institute for Fiscal Studies (IFS) has recommended that the government establish realistic budget targets in order to bolster fiscal credibility. The organization emphasized the importance of a trustworthy budget for effective financial management and the overall stability of the economy. Such credibility is crucial to inspire confidence among stakeholders and mitigate risks associated with fiscal mismanagement.
In conclusion, the IFS highlights the critical need for the government of Ghana to adopt realistic budgetary practices to enhance fiscal credibility. By avoiding overestimations in revenue forecasts and excessive borrowing, Ghana can work towards achieving economic stability and sustainable growth.
Original Source: www.gbcghanaonline.com
