The World Bank has identified Ghana’s fiscal crisis as a result of poor budget discipline, with rampant public spending and rising interest payments limiting financial resources. The issues are exacerbated by high spending during elections, costly bailouts, and pandemic impacts. The Bank calls for urgent fiscal reforms to ensure long-term economic stability.
The World Bank reports that Ghana is facing significant fiscal challenges due to inadequate budget discipline. This has resulted in uncontrolled public spending and escalating interest payments, creating severe financial constraints. The latest Public Finance Review attributes this situation to various factors such as increased spending during elections, costly sector bailouts, and pandemic-related expenditures, which have all put undue pressure on Ghana’s fiscal resources.
The World Bank emphasizes the urgent need for Ghana to implement stringent fiscal reforms to secure its economic stability. Key recommendations include enhancing domestic revenue, reducing tax exemptions, and tightening expenditure controls. If these reforms are not undertaken, Ghana risks undermining recent economic progress and entering a phase of prolonged financial instability, highlighting the critical role of disciplined fiscal management in sustaining growth.
Original Source: citinewsroom.com
