2026 Budget Is Being Poorly Executed -IFS
The Institute for Fiscal Studies (IFS) has raised concerns over what it describes as poor execution of Ghana’s 2026 Budget, warning that the government’s failure to spend GH¢35.6 billion of its planned expenditure in the first half of the year could undermine economic growth. The IFS said while government’s efforts to stabilise the macro economy and reduce interest […] The post 2026 Budget Is…
The Institute for Fiscal Studies (IFS) has criticized Ghana's 2026 budget, alleging poor execution that could hinder economic growth. The government has allocated GH¢35.6 billion in unspent expenditure in the first half of the year, which represents 20.6% of the planned budget. Dr. Said Boakye, the Executive Director of the IFS, highlighted that the shortfall was particularly concerning because some of the affected expenditure items were crucial for economic activity and development.
Capital expenditure fell short by GH¢14.35 billion (39.3% of the budgeted amount), while arrears payments fell short by GH¢8.64 billion (61.8%). The IFS argued that the government's spending reduction strategy could weaken economic growth since government spending constitutes a significant portion of GDP. The institute also questioned why domestic financing had fallen significantly when the government had raised substantial resources for the Sinking Fund.
Additionally, the IFS questioned the realism of the government's projected 4.8% GDP growth for 2026, given that the economy grew by 6.0% in 2025 and 6.4% in the first quarter of 2026.
Written by urgent.news from The Chronicle Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
