Gov’t’s failure to meet T-bill target threatens development plans – Analyst
By Rebecca Okine
Economic analyst Emmanuel Boateng has warned that the government’s failure to meet its treasury bill (T-Bill) target for the seventh consecutive week could significantly disrupt its development plans, especially in delivering essential infrastructure and services.
His comments come following the Bank of Ghana’s auction results released on Friday, July 11, 2025, which showed the government raised GHS6.12 billion, missing its target of GHS7.525 billion by 22.82 percent.
Speaking on the Business Breakfast show on Zed 101.9 FM, Mr. Boateng explained that the T-Bill market plays a critical role in funding the government’s development agenda, not its routine administrative operations.
He stressed that consistent underperformance in the domestic bond market limits the government’s ability to deliver on promised infrastructure and social projects.
“If the government is unable to raise what it has projected, especially through the T Bill market, then obviously, there will be constraints in development spending,” the economic analyst said.
Mr. Boateng explained that treasury bills are often used to fill funding gaps in the national budget, particularly when revenue shortfalls affect capital projects.
When those funds are not raised as anticipated, development efforts such as school buildings, hospitals, water facilities, and road construction suffer delays or cancellations.
“Imagine if part of this money was meant for a hospital or a water facility, then it means that those communities will go without these essential services because the government cannot fund the project,” he noted.
The economic analyst indicated that while external support from institutions like the International Monetary Fund (IMF) and the World Bank may offer some relief, reliance on such sources alone is unsustainable and risky for long term planning.
“This market cannot be undermined. It is where government regularly looks to bridge the financing deficit, and underperforming in this space is dangerous,” he said. “It limits the government’s ability to spend at full scale as it intends, and that ripple effect is felt directly by citizens,” he explained.
Mr. Boateng also cautioned that if the under subscription trend continues, the government may be forced to seek alternative borrowing sources, possibly from international markets where interest rates may be higher or conditions more stringent.
He emphasized the need for the government to prioritize credibility and investor confidence in the domestic debt market by maintaining fiscal discipline, ensuring timely payments, and communicating clearly with investors.
“The inability to raise the needed funds affects not just macroeconomic indicators but the day to day lives of Ghanaians who depend on government projects,” the economic analyst added.
