Mid-Year Budget Review: Minority questions govt’s economic performance

Ghana's opposition New Patriotic Party (NPP) Minority in Parliament is raising concerns about the nation's economy as the government prepares for its Mid-Year Budget Review. The party contends that reported economic improvements are largely a result of reduced government spending, rather than genuine economic growth.

At a press conference in Accra, Kojo Oppong Nkrumah, Chairman of the NPP's Finance and Economy Policy Committee, stated that the Minority's assessment is based on the government's own published economic data. He highlighted three key areas: the methods used to achieve macroeconomic targets, the sustainability of these measures, and critical development challenges the government has failed to address.

Nkrumah argued that while the government anticipates announcing a primary fiscal surplus of 2.6 percent of GDP, this figure was achieved by cutting expenditure, not by increasing revenue. He noted that revenue fell short of the revised target by approximately 4.7 percent, while expenditure was significantly reduced. Capital expenditure, in particular, was about 41 percent below target in the first quarter of 2026. Spending on essential sectors like roads, schools, and hospitals also fell below budgeted levels.

The Minority also questioned the Finance Ministry's figures on government arrears, pointing to inconsistencies. Despite an initial announcement of GH¢67 billion in arrears, later revised to GH¢45 billion after an audit, sectors like roads continue to report substantial outstanding payments. The former Information Minister urged the Finance Minister to provide a clear explanation of the current arrears and the calculation methodology during the budget review.

Furthermore, concerns were expressed about the sharp decline in government revenue, especially from the oil sector, which dropped from GH¢19.8 billion in 2024 to GH¢8.7 billion in 2025. The NPP questioned whether the government would revise its full-year revenue target or introduce new taxes. On economic growth, Nkrumah asserted that the reported expansion is primarily driven by high global gold prices, not by government policies, citing increased gold production and exports as the main support for the first-quarter growth rate of 6.4 percent.

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In simple terms, the government did not collect more revenue than expected. It simply spent far less than it planned.