The Minister for Finance, Mr Ken Ofori-Atta, has called on the newly sworn-in Fiscal Risk Committee to support the government to achieve the twin objectives of macroeconomic stability and effective fiscal management.
He noted during the swearing-in of the 17-member committee on Wednesday that, “The Fiscal Risk Committee was inaugurated in July 2019 and has been established as part of the Economic Policy Coordinating Committee (EPCC) to supervise matters relating to financial risk management under regulation nine (9) of the Public Financial Management Regulations, 2019 (L.I.2378).
“Today, with the Government just about to begin implementation of the Post Covid Programme for Economic Growth (PC-PEG), the role of the Fiscal Risk Committee will be even more prominent in the days ahead.”
According to the Minister, the committee, per the PFM regulation 9(3) was tasked to review the fiscal risks statement and any other reports on fiscal risks management, exchanging information and recommendations about fiscal developments concerning fiscal risks.
Others included providing directives on the implementation of relevant policy, recommendations from studies on fiscal risk, proposing typical areas for research on fiscal risk and facilitating the provision of data and information needed for fiscal risk analysis and reporting.
He further disclosed that the government’s ambitions of reaching a 1.5 per cent of GDP primary surplus in the medium term, with a fiscal revenue objective of 18.5 per cent of GDP from around 15.5 per cent in 2022, could be feasible if the committee could accommodate a range of strategies to tackle financial risks relating to inflation, exchange rate volatilities, contingent liabilities from SOE borrowings, and other risks likely to cause expenditure overruns.
“I encourage each of you to approach your responsibilities with a sense of curiosity and an open mind. Be prepared to question, analyze and learn. Embrace the unique perspectives that each of you brings to this committee for it is through the richness of these diverse insights that we will build a robust and comprehensive execution of our fiscal strategy,” he stated.
Mr Ofori-Atta expressed the government’s readiness to support the committee’s work and hinted that, at the World Bank/IMF Spring meetings, it was clear at various meetings with African Finance Ministers that transparent financial reporting and effective risk management would underpin the sustainability of public finances going forward.
On his part, the Minister of State at the Ministry of Finance, Dr Mohammed Amin Adam and the Chairman of the newly sworn Committee assured that the Committee would perform the duties as assigned in section 9 (3) of the Public Financial Management Regulations, 2019, LI 2378 and noted that the excellent team assembled by the Minister would deliver to ensure prudent fiscal management of the country.