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Ghana Needs Transparent Budgeting and Economic Independence, Says Dr. Stephen Amoah

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  Published in Politics and Government on Thursday, November 13th 2025 at 19:03 GMT by Ghanaweb.com

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Ghana Needs Transparent Budgeting and Economic Independence, Says Dr. Stephen Amoah

In a recent commentary published on GhanaWeb’s business portal, senior economist Dr. Stephen Amoah underscored the urgent need for a more transparent budgeting process and a stronger economic independence for Ghana. The piece, dated mid‑2024, was framed around the country’s continuing fiscal deficits, mounting public debt, and the political will required to steer the nation towards sustainable growth.

1. The Central Thesis: Transparency as a Cornerstone of Economic Sovereignty

Dr. Amoah argues that “budget transparency is not a nicety but a necessity for true economic independence.” He points out that when the budgeting process is opaque, citizens, investors, and even creditors are left uncertain about how public resources are allocated and spent. This uncertainty breeds mistrust and can discourage foreign investment – a critical driver of Ghana’s economic agenda.

The article references GhanaWeb’s “Budget Transparency Laws” page, which outlines the legal framework under which the Ministry of Finance publishes its annual budget documents. Amoah notes that while the laws exist on paper, implementation gaps persist, especially in the timely release of detailed line‑item expenditure data and the lack of independent audits that can be publicly accessed.

2. The Fiscal Context: Deficits, Debt, and External Dependence

Amoah provides a succinct snapshot of Ghana’s fiscal health:

• Fiscal Deficit: In the 2023/24 fiscal year, Ghana’s deficit reached 5.6 % of GDP, a sharp rise from 3.8 % the previous year.
• Public Debt: The debt-to-GDP ratio climbed to 69 %, a level that threatens debt sustainability.
• External Borrowing: A significant portion of the borrowing comes from international institutions and foreign governments, which can impose conditions that erode policy autonomy.

He draws on GhanaWeb’s linked “Debt Profile” article to emphasize that a heavy reliance on external funds can be double‑edged; while it provides immediate liquidity, it also opens avenues for conditionalities that may limit domestic policy space.

3. Key Recommendations for Enhancing Transparency

a) Adopt a Policy‑Based Budgeting Framework

Amoah proposes shifting from a purely accounting‑centric approach to a policy‑based one. In such a framework, each budget line item is justified by its contribution to national development goals—whether it be education, health, or infrastructure. This linkage would make the allocation process more accountable and help identify wasteful spending.

b) Strengthen Independent Oversight

He stresses the importance of a robust, independent auditor general’s office that can scrutinise budget execution without interference. The article references the “Ghana Independent Auditor General” page, noting that its current mandate could be expanded to include real‑time monitoring of expenditure through digital dashboards accessible to the public.

c) Public Participation and Civil Society Engagement

Amoah calls for structured avenues where civil society organisations (CSOs) can review draft budgets and provide feedback. GhanaWeb’s “Civil Society Budgeting” article highlights pilot projects where CSOs have successfully contributed to budget amendments that cut unnecessary subsidies.

d) Data Transparency and Digital Platforms

The economist recommends the creation of an open‑data portal that aggregates all budgetary data in machine‑readable formats. This would empower researchers, journalists, and citizens to conduct independent analyses. The portal would align with GhanaWeb’s “Data Transparency” initiative, which has already seen successful implementations in other sectors.

4. Pathways to Economic Independence

Beyond transparency, Amoah frames economic independence as a multi‑pronged objective that includes:

1. Diversifying Revenue Streams – Broadening the tax base beyond oil and gas, including the formalisation of the informal sector and improving tax collection efficiency.
2. Promoting Domestic Production – Encouraging local industries through incentives, reducing reliance on imports for critical goods, and thereby lowering external debt servicing costs.
3. Strategic Debt Management – Renegotiating terms with international creditors, favouring longer‑term, lower‑interest instruments, and maintaining a buffer fund for emergencies.
4. Structural Reforms – Simplifying the business environment, reducing bureaucratic red tape, and fostering a climate that attracts foreign direct investment without compromising sovereign policy space.

The article links to GhanaWeb’s “Economic Reform Roadmap” which outlines specific policy measures such as tax reforms, industrial upgrading, and macro‑prudential frameworks designed to fortify Ghana’s economic sovereignty.

5. Political Will and Institutional Commitment

Amoah concludes that “transparent budgeting and economic independence cannot be achieved without the unwavering political will of the government, the vigilance of the Parliament, and the active participation of the electorate.” He underscores the importance of embedding transparency mandates within the constitution or, at a minimum, within the formal parliamentary oversight mechanisms.

The GhanaWeb article references the “Parliamentary Oversight on Budgets” page, detailing how the finance committee’s current powers are limited by procedural constraints that hamper timely scrutiny of the budget. Enhancing these powers, Amoah suggests, would create a check‑and‑balance system critical for maintaining fiscal discipline.

6. Takeaway for Stakeholders

For policymakers, the message is clear: institutionalise transparency and diversify revenue sources to regain economic autonomy. For the private sector, the focus should be on aligning business strategies with policy goals, ensuring compliance, and taking advantage of opportunities in a transparent market. For citizens, active engagement—through CSOs, media, and direct participation in budgeting forums—can hold public officials accountable.

In a rapidly changing global economic landscape, Ghana’s path to sustainable growth hinges on a transparent, inclusive budgeting process and a commitment to reducing external dependencies. Dr. Stephen Amoah’s commentary, as captured by GhanaWeb, offers a roadmap that blends rigorous fiscal discipline with proactive governance reforms. If the country can translate these recommendations into action, it stands a much better chance of securing a future where its economy is resilient, equitable, and genuinely independent.