ISSER endorses the establishment of a value-for-money office to promote fiscal discipline

The Institute of Statistical, Social and Economic Research (ISSER) has thrown its weight behind the government’s plan to establish an Independent Value-for-Money Office to strengthen the oversight of public expenditure and enhance accountability.

At the review of the 2025 Budget, ISSER Director Prof. Peter Quartey described the proposal as “long overdue,” citing persistent concerns over contract awards and procurement processes that often benefit hidden interests connected to those in power.

“Very often, the beneficial owners of state contracts are relatives or associates of powerful people. A robust value-for-money mechanism will help address such issues and ensure Ghanaians get real value for every cedi spent,” he emphasised.

The government’s budget outlines a raft of public financial management reforms, including auditing and validating arrears, enforcing spending ceilings, and amending the procurement law to improve efficiency.

Prof. Quartey welcomed these moves but stressed that implementation and strong political will would determine its success.

He also proposed the establishment of an Independent Fiscal Responsibility Council to further bolster fiscal discipline, particularly given Ghana’s persistent fiscal deficits and rising debt service costs.

“With interest payments consuming over 37% of government revenue, we cannot afford inefficient capital investments or misapplied resources. Discipline and accountability must guide our public financial management,” he urged.

Prof. Quartey further called for reforms in the tax refund system, which he described as problematic, with 43% of refunds reportedly misapplied.

Streamlining the process and improving tax education, he said, would enhance compliance and fairness.

“These reforms are essential if the government’s ambitious budget targets are to be achieved and if public confidence in state institutions is to be restored,” he said.

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