Accra, July 28, 2026 – The Centre for Policy Scrutiny (CPS) has raised concerns that approximately GH¢30.7 billion worth of critical government programmes and capital projects have gone unfunded over the past 18 months despite Ghana recording stronger-than-expected fiscal performance. The policy think tank says the government’s expenditure-led fiscal consolidation strategy has improved key macroeconomic indicators but has also delayed the implementation of essential development projects across several sectors.
The concerns were presented on Tuesday during the CPS’s assessment of the government’s 2026 Mid-Year Budget Review. According to the Centre, the government’s efforts to reduce the fiscal deficit and improve debt sustainability have largely been achieved by spending significantly less than originally budgeted, leaving many Ministries, Departments and Agencies (MDAs) unable to execute planned programmes and infrastructure projects.
Executive Director of the Centre for Policy Scrutiny, Dr. Adu Owusu Sarkodie, acknowledged that Ghana’s recent fiscal improvements represent a positive step towards restoring macroeconomic stability. However, he argued that the achievements have come at a considerable cost to national development.
“There is no doubting the benefits of the consolidation,” Dr. Sarkodie said. “The decrease in the deficit means a decrease in borrowing as a share of GDP, fostering debt sustainability and macroeconomic stability. However, because the deficit reduced more than anticipated due to lower-than-planned expenditure, many approved programmes and capital projects were not implemented.”
According to the Centre, the under-execution of the national budget has affected numerous government institutions that relied on approved allocations to undertake development projects, deliver public services and implement policy interventions. The think tank warned that while fiscal discipline remains necessary, prolonged delays in capital expenditure could slow economic growth and negatively affect citizens who depend on public infrastructure and government services.
The CPS further argued that expenditure cuts alone cannot serve as a long-term solution to Ghana’s fiscal challenges. Instead, it urged the government to pursue a balanced approach by strengthening domestic revenue mobilisation while ensuring that priority development programmes receive adequate funding.
The Centre also noted that despite several new revenue-enhancing measures introduced by government, including reforms in tax administration and the use of artificial intelligence to improve customs operations, revenue performance has yet to meet expectations. It therefore recommended broadening the tax base, improving tax compliance and strengthening enforcement rather than relying mainly on expenditure reductions to achieve fiscal targets.
The concerns form part of a broader review of the 2026 Mid-Year Budget in which the CPS also questioned inconsistencies in some of the fiscal figures presented by the Ministry of Finance. The organisation said conflicting expenditure and capital expenditure figures contained in different sections of the budget document could undermine public confidence in the country’s fiscal reporting and should be addressed to improve transparency and accountability.
The government’s 2026 Mid-Year Budget Review, presented in Parliament by Finance Minister Dr. Cassiel Ato Forson, highlighted improvements in economic growth, declining inflation, stronger foreign exchange reserves and better fiscal management. Government has maintained that these gains demonstrate the country’s ongoing economic recovery and commitment to restoring macroeconomic stability after years of economic challenges.
However, the CPS maintains that fiscal consolidation should not come at the expense of critical national development projects. The organisation believes that while reducing the budget deficit is essential, government must ensure that key infrastructure, education, health and social intervention programmes are adequately financed to sustain economic growth and improve living standards.
As discussions on the Mid-Year Budget continue, analysts expect the Ministry of Finance to respond to the concerns raised by the CPS and outline measures to balance fiscal discipline with the timely implementation of government programmes. The debate is likely to shape public discourse on Ghana’s economic management in the months ahead, particularly as government seeks to maintain fiscal stability while accelerating national development.
SEIDU HUBEIDATU