Executive Director of the Institute of Economic Research and Public Policy, Professor Isaac Boadi, has challenged the government’s presentation of fiscal restraint, saying that lowering public expenditure does not automatically equate to genuine economic savings.

Addressing the Finance Minister, Dr. Cassiel Ato Forson, and government communicators, Prof Boadi emphasised that reduced spending only translates to permanent savings if unspent capital is redirected into productive sector investments that generate returns.

Prof. Boadi questioned the Minister for Finance regarding accountability for the country's flagship 24-Hour Economy Initiative.

He noted that while approximately GHC 110 million has been allocated and spent on the program, there remains little verifiable output or economic impact to show for the investment, urging the ministry to provide a comprehensive update to the public.

While acknowledging that Ghana’s debt-to-GDP ratio has shown technical improvement, Prof. Boadi warned against unmanaged borrowing moving forward.

He pointed to upcoming debt maturities expected between 2027 and 2028, warning that if national revenues continue to underperform, the country will face significant hurdles in meeting its debt service obligations.

Analyzing the mid-year fiscal performance, the finance expert highlighted broad shortfalls in state revenues: Non-oil revenue targets were not met; domestic revenue targets were not met; total revenue targets were missed budgetary projections were missed.

Speaking on Peace FM, Prof. Boadi raised alarms over reversing macroeconomic gains, citing recent upticks in inflation and renewed depreciation of the Ghanaian Cedi.

He questioned the practical impact of the measures outlined in the mid-year budget review, asking how spending cuts and missed revenue targets can realistically translate into tangible job creation for the youth.