Accra: The Institute for Fiscal Studies (IFS) has expressed concern over the government's failure to meet planned expenditure targets in the first half of 2026. The Acting Executive Director of IFS, Said Boakye, warned that the shortfall could undermine development projects and budget credibility.
According to Ghana Web, government spent GHS35.6 billion less than projected between January and June. Planned expenditure for the period was GHS172.54 billion, but actual spending fell significantly short. Said Boakye told Citi News that the underspending risks slowing economic growth and weakening confidence in fiscal management.
"The considerable underspending in the first half of 2026 relative to the budget plan not only undermined the budget's credibility but, more importantly, left much to be desired in terms of growth and development," he said. Boakye noted that lower-than-planned spending meant several programmes expected to support economic growth may not have been fully implemented.
He also criticised the government for diverting funds into a secondary account rather than following the financing plan approved in the 2026 budget, creating challenges in funding development projects and other obligations. He urged the government to adhere more closely to the approved budget in the second half of the year, stressing that spending plans should only be altered if there are major changes in revenue or funding availability.