New Fiscal Council Faces ‘Steep Uphill Climb’ Amid Ghana’s Fiscal Pressures; Risks Becoming ‘Toothless Bulldog’ Without Independence – Joe Jackson
Chief Executive Officer of Dalex Finance, Joe Jackson, has cautioned that Ghana’s new Fiscal Council will face formidable challenges in establishing credibility, stressing that its effectiveness will hinge on independence, technical competence, and political will.
Speaking during the NorvanReports, Economic Governance Platform (EGP) and Ghana Anti-Corruption Coalition (GACC) X Space Discussion themed “From Watchdog to Advisor: Should Ghana’s Fiscal Council Only Police or Also Shape Fiscal Policy?” on Sunday, September 14, 2025, Mr Jackson described the mandate of the Council as “a steep uphill climb.”
He noted that Ghana’s constrained fiscal space, debt sustainability concerns, election cycle pressures, and overreliance on commodities such as gold, cocoa and oil posed significant hurdles to the Council’s credibility.
“Enforcing fiscal discipline will be politically unpopular. Expenditure cuts, new revenue measures, and revenue volatility are all realities that the Council must grapple with,” he asserted.
Mr Jackson further questioned whether Parliament and the Bank of Ghana would fully cooperate with the Council, warning that without enforcement and institutional respect, it risked becoming “a toothless bulldog.”
He emphasised that credibility would only be enhanced if the Council demonstrated independence from the Ministry of Finance, published its own projections, and communicated its findings clearly to the public and investors.
“The day the Fiscal Council report contradicts the Ministry of Finance will be the day its credibility goes up considerably,” he remarked.
The Dalex Finance CEO argued that the Council should avoid playing an advisory role to the Finance Ministry or the central bank, insisting that it should remain a strict watchdog that verifies and reports on fiscal performance.
The Fiscal Council, to be established under the revised Public Financial Management (Amendment) Act, 2025, is mandated to monitor and advise on Ghana’s fiscal performance. The Act also introduces new fiscal anchors, including a fiscal surplus target of at least 1.5% of GDP and a public debt ceiling of 45% of GDP by 2034.
This is not the first attempt to institutionalise fiscal oversight. In 2019, Ghana established a Fiscal Council to enforce a 5% deficit rule, but its operations were suspended following the Covid-19 pandemic. Since then, there has been no effective fiscal council in place.
