ISSER calls for increased capital spending to support businesses

The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Robert Darko Osei, is advocating for the government to increase capital spending to bolster businesses and elevate overall economic efficiency. Osei argues that the government's reliance on cutting capital expenditure could hinder investment in crucial infrastructure necessary to sustain economic activity.

Speaking on PM Express Business Edition, the professor highlighted that capital expenditure in the first half of 2026 dropped more than 40 percent below target, which is at odds with the government's aim to fast-track infrastructure development and bolster the business climate. "We were down by the target by over 40 percent in terms of the capital expenditures, which clearly is not consistent with a big push to try and beef up infrastructure," Osei stated.

He emphasizes that infrastructure development should be viewed as a vital part of enhancing business efficiency, not merely as an investment in tangible assets. "We are not doing the infrastructure for the sake of infrastructure. We are doing the infrastructure to support the ecosystem within which businesses operate," he elaborated.

Consequently, Osei is urging the government to allocate more funds towards capital projects as it navigates the fiscal space generated by its consolidation efforts. However, he underscores the importance of pairing increased capital spending with diligent monitoring and accountability. "It is not just the number of or the amount of cedis that we spend.

It is also the efficiency of the spending," Osei stressed. He warns that government must implement robust checks and balances to ensure capital projects yield cost-effective results and generate the desired economic advantages.