The Bill is to ensure fiscal responsibility, macroeconomic stability, and debt sustainability.
The Akufo-Addo government has touted the Bill describing it as one of the instruments through which it will maintain fiscal discipline as Ghana exits the IMF Program.
However, the concerns raised by the provision which allowed for the vote of censure on the Finance Minister if spending exceeds the defined limits.
The Members of Parliament (MP) who were present in the house as it rose for the Christmas break, approved the bill.
Before the bill was approved, the Finance Minister, Ken Ofori-Atta, was in the house to explain the importance of the bill. He said that the bill will serve as a guide to anyone who takes over management of the economy to avoid plunging it into distress.
“As we exit the IMF Program this year, we want to ensure that investors are comfortable and that we will manage our economy well. This bill will give us some guidance and ensure that the future management of our economy is well done,” he said.
In an earlier public address, Ghana’s Vice President Dr Bawumia said the government will pass the bill by the end of the year. He added that the government would set up an independent Fiscal Council and an independent Financial Stability Council to enforce the law.
“Government will soon pass a law to prevent politicians from sacrificing prudent economic management on the altar of political expediency.”
He argued that the current government has learnt a lot in its 23 months in office and realised there is an urgent need to pass such a law to safeguard Ghana’s economic gains in the future.
“This has never been done by any government since independence, and this law will tie the hands of politicians, including ourselves to maintain fiscal and monetary discipline,” Dr Bawumia said.