Fiscal discipline collective responsibility — Graphic MD
The Managing Director (MD) of Graphic Communications Group Ltd (GCGL), Ato Afful, has said the assurance of fiscal discipline relies on the collective dedication of the people to actively participate in the democratic process.
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He said Ghanaians, by holding their standard bearers to account, would not only safeguard the nation's financial well-being but also reinforce the principles of good governance that were essential for sustainable development.
At the fourth quarter edition of the Graphic Business/Stanbic Bank Breakfast meeting in Accra yesterday, Mr Afful said: “Culturally, we have certain nuances that enable certain things. Socially, we have certain habits that engender all these developments. Politically, we build certain attitudes. However, if we, the people, are committed to holding our standard bearers to account then that fiscal discipline will be assured.”
The meeting, which was in line with the post-2024 Budget Statement presentation by the minister of Finance, attracted participants from all sectors of the economy, including academia, captains of industry, business associations and economic experts.
It was on the theme: “Fiscal Discipline: Breaking the political business cycle in 2024”.
Budget overruns
His call is on the back of similar sentiments expressed by analysts who also hold the view that fiscal discipline is critical as the nation heads to the 2024 election year.
Over the past three decades in the Fourth Republic, election-related spending has posed challenges for the economy immediately after the elections because of budget overruns.
The 2024 Budget Statement and Government Economic Policy, which was laid before Parliament last week, is pointing to a determination to overspend.
Total revenue and grants are projected at GH¢176.4 billion (16.8 per cent of GDP) and are underpinned by permanent revenue measures, largely Tax revenue measures amounting to 0.9 per cent of GDP.
By way of resource allocation for 2024, the government is projecting a total expenditure (commitment) of GH¢226.7 billion (21.6 per cent of GDP).
Much as this projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022, there are worries about the deficit when the signs on the ground are not the best.
The overall budget balance to be financed is a fiscal deficit of GH¢61.9 billion, equivalent to 5.9 per cent of GDP.
Changing attitudes
Mr Afful further said citizens must recognise their role in the economic well-being of the nation and understand how their financial decisions collectively impacted the overall fiscal health.
He said promoting a sense of responsibility could lead to a more informed and conscientious approach towards money management.
He stated that changing attitudes was also crucial to ensuring fiscal discipline in the country.
According to him, a shift in mindset towards responsible financial behaviour, both at the individual and institutional levels, was essential.
That, he said, involved fostering a culture that valued prudent spending, transparent financial practices, and adherence to budgetary constraints.