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Ghana IntelBrief

August 13, 2026
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IFS says poor budget execution undermines credibility of 2026 fiscal plans

Money
Policy
Opportunity
Growth

Key Points

  • The Institute for Fiscal Studies (IFS) criticizes the Ghanaian government's poor execution of the 2026 budget in the first half of the year, stating it undermines fiscal credibility and economic growth.
  • Total government expenditure, including capital expenditure and arrears clearance, significantly fell below budgeted targets, with capital expenditure at 39.3% below target.
  • The IFS questioned the government's decision to maintain the 2026 real GDP growth projection at 4.8% despite higher recent growth figures and deemed the 16.8% revenue-to-GDP target unrealistic.
  • Inconsistencies were found in the mid-year budget review's fiscal data, including an unexplained GH¢712.43 million difference in first-half revenue figures.
  • A major concern is the lack of a clear strategy to generate fiscal revenue from the small-scale gold mining sector, which accounted for 51.5% of gold exports in 2025 but contributed little to state revenue.

Why This Matters

Poor budget execution directly impacts public service delivery and critical infrastructure projects in Ghana, while undermining investor confidence in the government's fiscal management. The missed opportunity to generate substantial revenue from the large small-scale mining sector represents a significant hindrance to national development and fiscal stability. Addressing these issues is crucial for Ghana's economic health, long-term growth, and the government's ability to meet its financial obligations.

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