The Institute of Economic Affairs (IEA) has made an urgent call for the establishment of an Independent Parliamentary Budget Office in Ghana, with the aim of strengthening the country’s monetary and fiscal management systems.

The IEA believes that such a move would go a long way towards transforming Ghana’s economy, and ensuring the effective assessment and estimation of the cost of government projects and programs.

Speaking at a meeting with various Civil Society Organizations, Dr. John Kwakye, Director of Research, emphasized that an Independent Parliamentary Budget Office would be very different from the nation’s current Fiscal Council. Instead, it would be constituted of independent professionals, and would be entrusted with working alongside parliament to aid in its oversight duty.

“We are calling for the establishment of an independent parliamentary budget office, that’s what is normally called a fiscal council. In the US they have a conventional budget office.
“In the UK, they have office of budget responsibility and others have the fiscal councils. The idea of a parliamentary budget office is that it is marked by independent professionals.”
Institute of Economic Affairs

Independence of Parliamentary Budget Office

According to the IEA Director of Research, to protect the office’s independence from outside influence, its members would not be appointed by the executive.

By monitoring the government’s spending and borrowing, the office, as noted by Dr. Kwakye, could help prevent overspending and overborrowing, which are common problems in many developing economies.

The attachment to parliament, according to him, is one of the crucial conditions that would uphold the office’s professionalism and increase its independence.

He further revealed that the establishment of an Independent Parliamentary Budget Office would also have significant implications for Ghana’s economic development. By ensuring that government projects and programs are accurately assessed and costed, the office could help to prevent wasteful spending and promote more efficient resource allocation. This, in turn, could help to attract investment and stimulate economic growth.

Despite these difficulties, the IEA’s recommendation that Ghana establish an Independent Parliamentary Budget Office is a critical step in enhancing the nation’s budgetary management procedures and fostering economic development.

Such an office could contribute to increasing trust and confidence in Ghana’s economy, and luring investment from both domestic and international sources by assuring better openness and accountability in government spending.