The Institute for Fiscal Studies (IFS) has urged the government to improve budget execution in the latter half of 2026 by ensuring expenditures align with the sanctioned budget.
This appeal follows an IFS analysis revealing that the government’s spending in the first half of the year was GH¢35.6 billion below the planned amount.
The government had aimed to spend GH¢172.54 billion in the first half of 2026, yet actual spending was considerably lower.
During a briefing on the 2026 mid-year budget review, Dr. Said Boakye, the Acting Executive Director of the IFS, stated that the substantial underspending has undermined the budget’s credibility and limited development expenditures.
“The significant underspending in the first half of 2026 compared to the budget plan not only compromised the budget’s credibility but, more critically, it also hindered the country’s growth and development prospects.”
Dr. Boakye called on the government to fully execute approved expenditures unless there are alterations in revenue or financing circumstances.
He also criticized the government’s financing choices during the first half of the year, contending that the accumulation of resources in the second fund deviated from the approved financing strategy and complicated spending in essential areas.
“Unfortunately, the government disregarded the financing plan outlined in the budget during the first half of 2026 by amassing resources in the second fund, which was not part of the original plan, leading to challenges in funding critical items such as capital expenditures and various payments,” he remarked.
Consequently, the IFS is urging the government to ensure that future financing decisions align with the approved budget.
