Senior Presidential Advisor Yaw Osafo Marfo has called for the reintroduction of the Fiscal Responsibility Act to address budget overruns during election years.
The Parliament of Ghana suspended the implementation of the Act in 2020 due to the COVID-19 pandemic.
The Fiscal Responsibility Act, 2018 (Act 982) mandates the government to ensure that the overall fiscal balance on a cash basis for a particular year does not exceed a deficit of five percent of the gross domestic product for that year.
Mr. Marfo highlighted that elections in Ghana since the inception of the Fourth Republic Constitution have been characterized by budget overruns, with governments often exceeding their budgets.
He attributed these overruns to promises made by politicians during election years, leading to many projects being undertaken without budgetary allocation.
He made these remarks in Accra at the Open Government Partnership (OGP)-Infrastructure Transparency Initiative (CoST) Stakeholder Meeting on Revitalizing Infrastructure Investment in Ghana.
“It is very important that the Minister of Finance go by the budget that has been presented to Parliament. If the government is not able to match additional revenue, it should not go for an additional expenditure.
If the budget exceeds the revenue, then there is going to be a cost overrun.
“So far, in our history in the fourth republic, in every election year, we have a situation where we have serious budget and cost overruns,” he said.
Mr Marfo, who is also the Chairman of OGP, said, “I think that the government must reconsider implementing the Act very well to address cost and budget excesses during the election year.”
The Presidential Advisor emphasized that the full implementation of the Fiscal Responsibility Act is crucial to prevent distortions and protect government finances in future financial years.
He also highlighted the importance of the Infrastructure Accountability Initiative, which aims to enhance transparency, participation, and accountability in the execution of infrastructure projects.
“This is done through multi-stakeholder working, disclosure of data, an independent review known as CoST assurance, and social accountability,” he said.
The project was initially piloted in the Sekondi-Takoradi Metropolitan Assembly, where it significantly enhanced the Assembly’s reputation for transparency and accountability as one of the sub-national OGP members.
Mr. Christian Poortman, the Board Chairperson for CoST, outlined the initiative’s goals, which include enhancing capacity, promoting effective governance in local infrastructure projects, and fostering engagement with stakeholders.
He emphasized that Ghana’s hosting of the 28th CoST Board Meeting underscored the collective commitment to transparency, accountability, and good governance in infrastructure development.