The Institute for Fiscal Studies (IFS) has called on government to improve budget execution in the second half of 2026 by ensuring that expenditure remains aligned with the approved budget.
The call follows an analysis by the IFS which found that government’s expenditure in the first half of the year fell GH¢35.6 billion short of the amount programmed.
Government had targeted expenditure of GH¢172.54 billion for the first half of 2026, but actual spending was significantly lower.
Speaking at a briefing on the 2026 mid-year budget review, Acting Executive Director of the IFS, Dr. Said Boakye, said the significant underspending had affected the credibility of the budget and constrained development spending.
“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 urged government to fully implement approved expenditures unless there are changes in revenue or financing conditions.
He also criticised government’s financing decisions during the first half of the year, arguing that the accumulation of resources in the second fund was not part of the approved financing plan and created difficulties for spending on key areas.
“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 urging government to ensure that financing decisions are consistent with the approved budget going forward.
