Ghana budget execution shows GH¢35.6 billion shortfall

The Institute for Fiscal Studies (IFS) has raised concerns regarding the execution of Ghana’s 2026 budget, noting a significant expenditure shortfall in the first half of the year. According to IFS Acting Executive Director Said Boakye, the government spent GH¢35.6 billion less than the projected GH¢172.54 billion planned for the period between January and June 2026.

The shortfall is particularly pronounced in critical areas: capital expenditure fell short by GH¢14.35 billion (39.3% of the budget), and arrears payments missed their target by GH¢8.64 billion (61.8%). Dr. Boakye warned that the lack of arrears payments could stifle economic activity by depriving contractors, suppliers, and businesses of necessary liquidity.

Furthermore, the IFS criticized the government for diverting funds into a secondary account rather than following the approved 2026 financing plan. The institute warned that such underspending could undermine budget credibility, slow economic growth, and weaken confidence in national fiscal management.