Prioritise Spending Efficiency in Fiscal Consolidation – ISSER to Govt
The Institute of Statistical, Social and Economic Research (ISSER) has urged the government to place greater emphasis on the efficient use of public resources as it pursues fiscal consolidation, arguing that sustainable fiscal adjustment should be measured not only by expenditure cuts but also by how effectively public funds are utilised.
Speaking at ISSER’s Post-Mid-Year Budget Review Forum, the Institute’s Director, Professor Robert Darko Osei, said Ghana’s constrained fiscal space makes it imperative for government to improve the quality, efficiency and impact of public spending while maintaining its fiscal consolidation programme.
According to him, fiscal discipline alone will not be enough to restore long-term economic stability if scarce public resources are not directed towards projects that deliver the greatest economic and social returns.
“Fiscal consolidation, in the face of tight fiscal space, is not only about reducing expenditure. It is also about the efficiency of spending,” Professor Osei stated.
He explained that government should prioritise completing ongoing projects and ensuring they become fully operational before committing limited resources to new initiatives. Such an approach, he noted, would maximise the benefits of public investment, reduce waste and ensure taxpayers receive greater value for money.
Using road infrastructure as an example, Professor Osei said the sequencing of projects plays a critical role in improving spending efficiency. He argued that completing existing road projects before embarking on new expressways would generate greater economic benefits and improve the effectiveness of public investment.
“The prioritisation or sequencing of the new expressway relative to getting the one that is existing operational brings home the point about the need for efficiency of spending,” he said.
Professor Osei observed that while the government’s commitment to fiscal consolidation remains essential for preserving macroeconomic stability, improving expenditure efficiency would also create additional fiscal space for investments that promote economic growth without placing further strain on the national budget.
He stressed that better project selection, stronger monitoring and timely completion of public investments would enhance the impact of government spending and support Ghana’s broader development objectives.
His comments come as economists continue to assess the implications of the 2026 Mid-Year Budget Review, with particular attention on the government’s ability to sustain recent gains in inflation, exchange rate stability and fiscal performance while responding to infrastructure, social protection and development financing needs.
The ISSER Post-Mid-Year Budget Review Forum brought together policymakers, economists, development partners, academics and private sector representatives to assess the government’s fiscal policy measures and discuss the outlook for the Ghanaian economy. Participants also examined strategies to strengthen fiscal sustainability while supporting economic growth and improving the efficiency of public expenditure in an environment of limited fiscal resources.
