News

ISSER Warns of Election-Year Spending Risks, Urges Fiscal Restraint

Amazon Store

The Institute of Statistical, Social, and Economic Research (ISSER) has issued a cautionary call for fiscal restraint as Ghana heads into the 2024 election year, emphasizing the importance of maintaining recent economic gains. Director Professor Peter Quartey warned that election-year spending poses significant risks to Ghana’s financial stability, highlighting the need for fiscal discipline to protect key improvements in inflation, interest rates, and exchange rate stability.

ISSER recommends staying within fiscal targets to reinforce investor confidence and set the foundation for sustained growth, aligning with Ghana’s IMF-backed recovery plan. Additionally, ISSER suggests researching a flat-rate tax for businesses to streamline tax compliance and improve revenue collection.

Key Recommendations:
Fiscal Restraint: Avoid excessive spending during the election year to maintain economic stability.
Flat-Rate Tax: Explore implementing a flat-rate tax for businesses to simplify tax compliance and improve revenue collection.

Investor Confidence: Stay within fiscal targets to reinforce investor confidence and set the foundation for sustained growth.

ISSER has projected Ghana’s growth rate to hit 4.5 percent by the end of 2024, slightly higher than the IMF’s revised projection of 4 percent. The Institute recently launched the 2023 State of the Ghanaian Economy Report, providing in-depth insights into Ghana’s economic performance and trends.

Ruth Abla ADJORLOLO

Comments are closed.