BoG: Fiscal restraint is essential for fostering economic confidence

The Bank of Ghana (BoG) has underscored the significance of upholding stringent budgetary prudence as a means of strengthening economic confidence.

This announcement coincides with rising worries about the stability of the nation’s economy.

According to a press release from the Monetary Policy Committee on Monday, “on fiscal policy, expenditures outpaced revenue growth in the first quarter, reflecting the frontloading of IPP arrears payments,” the Bank of Germany said.

“Stronger fiscal restraint for the remainder of the year will be essential to bolstering economic confidence.”

The BoG went on to say that in order to keep budget deficits from getting out of hand and causing inflation and other economic issues, fiscal restraint is crucial.

Additionally, it supports investor trust, which is essential for drawing in foreign capital.