The Institute of Chartered Accountants Ghana is calling for fiscal discipline amidst the current high inflation and policy rate.

Some stakeholders have blamed unbudgeted spending by government Ministries, Departments and Agencies (MDA’s) for contributing to the high level of inflation in the country.

Since May 2021, when national inflation stood at 7.5%, the rate has increased consistently for 11 straight months, climbing all the way to 23.6% in April 2022.

While backing the recent hike in the policy rate to 19 % to help check inflation, President of the Institute of Chartered Accountants, Professor William Atuilik said internal systems of MDA’s need to be improved to keep government expenditure which affects inflation, in check.

“Inflation is a global issue hence the policy rate hike is a move in the right direction. The world is going through a very terrible time, but within our backyard, we should do the right thing. We should tighten fiscal discipline. This is not the time we should engage in wasteful spending.”

“We only spend on things budgeted for the government. We need our internal controls and internal audit arrangements to be strengthened, to make sure that whatever meagre resources are available are used solely for government business. We should also improve our domestic revenue mobilization efforts, with a particular focus on the informal sector,” he added.