The Institute for Fiscal Studies (IFS) has urged government to tighten budget implementation in the second half of 2026, warning that significant underspending in the first six months has weakened the credibility of the national budget.
According to the IFS, government spent GH¢35.6 billion less than the amount programmed for the first half of the year. Expenditure had been projected at GH¢172.54 billion for the period.
Speaking at an IFS briefing on the 2026 mid-year budget review, Acting Executive Director Dr. Said Boakye said the gap between planned and actual spending could undermine economic growth and delay critical development programmes.
“The considerable underspending in the first half of 2026 relative to budget plan not only undermined the budget’s credibility but more importantly it also left much to be desired in terms of growth and development of the country.”
Dr. Boakye said government should ensure that approved spending plans are implemented unless there are significant changes in revenue or financing conditions.
He also raised concerns about government’s financing decisions during the period, particularly the accumulation of funds in the second fund, which he said was not provided for in the approved financing plan.
“It is therefore regrettable that the government ignored the financing plan in the budget during the first half of 2026 by accumulating resources in the second fund, something that had not been planned for, creating complications for spending on important items like capital expenditure and various payments,” he said.
The IFS is therefore calling for closer alignment between government’s financing decisions and the approved budget in the remaining months of the year to ensure resources are deployed effectively and planned development expenditure is delivered.
