The Bank of Ghana (BoG) has highlighted the necessity of maintaining rigorous fiscal discipline to enhance confidence in the economy.
This assertion comes amidst escalating worries about the nation’s economic stability.
In its press release from the Monetary Policy Committee on Monday, the BoG noted, “On fiscal policy, expenditures outpaced revenue growth in the first quarter, reflecting the frontloading of IPP arrears payments.”
“Maintaining strict fiscal discipline for the rest of the year will be crucial to strengthen confidence in the economy.”
The BoG elaborated that strict fiscal discipline is vital in averting runaway budget deficits, which could trigger inflation and other economic challenges.
“It also helps to maintain investor confidence, which is crucial for attracting foreign investments.”
