Audio By Carbonatix
The Minority Caucus in Parliament has accused the administration of President John Dramani Mahama of presiding over what it describes as a significant decline in revenue performance, warning that fiscal consolidation claims do not reflect the underlying realities.
In a statement signed by Frank Annoh-Dompreh, Minority Chief Whip, the Caucus asserted that the government inherited a revenue-to-GDP ratio of 16 per cent but had seen it fall to 11 per cent by the third quarter of last year.
The statement described this as “a loss of approximately five per cent of GDP in revenue performance”, which it said explains expenditure constraints, salary arrears, and funding backlogs across the public sector.
“Fiscal discipline built on collapsing revenue is not reform; it is institutional contraction and state weakness,” the Minority declared.
It argued that while the government speaks of consolidation and prudence, the shrinking revenue base undermines the state’s capacity to deliver essential services and sustain development commitments.
The Caucus further contended that sterilisation policies aimed at curbing inflation have compounded economic hardship.
It pointed to the withdrawal of over GH¢60 billion from circulation, as acknowledged in the 2026 Budget, stating that this has constrained liquidity and dampened economic activity.
“What citizens are experiencing is not macroeconomic stability, but deliberate economic dryness,” the statement read.
The Minority concluded that economic management must prioritise structural growth and revenue expansion rather than contractionary measures.
“Governance must be grounded in sustainability and long-term resilience,” the statement emphasised, cautioning against what it termed short-term optics at the expense of enduring reform.
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