2025 Mid-Year Budget Masks Revenue Failures, Slashes Capital Investment, Offers No Clear Growth Plan – IERPP’s Prof. Boadi
The Institute of Economic Research and Public Policy (IERPP) has described the 2025 Mid-Year Fiscal Policy Review as a document filled with revenue optimism but devoid of substance, strategic direction, and credible growth initiatives.
According to the institute, behind the glossy fiscal narratives lies a troubling pattern of underperformance, cuts to capital investment, and a lack of a coherent economic recovery plan.
Addressing the media at a press conference held at the Ghana International Press Centre on Wednesday, July 30, 2025, Prof. Isaac Boadi, Executive Director of IERPP and Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA), presented a stark contrast to the government’s presentation of the budget.
“The 2025 Mid-Year Budget is a textbook case of revenue optimism masking structural failure. Without a real plan for inclusive growth and investment, Ghana’s fiscal direction remains dangerously adrift,” Prof. Boadi said.
The theme of the Finance Minister’s mid-year review presented to Parliament on July 24—“Resetting the Economy for the Ghana We Want”—projected an image of macroeconomic progress, citing falling inflation, cedi stability, and improved fiscal indicators. However, Prof. Boadi argued that beneath this façade, the numbers tell a different story, one of shortfalls, cuts, and unfulfilled promises.
Fragile Fiscal Base
IERPP’s analysis revealed that total revenue and grants underperformed by more than GH¢3.24 billion. Prof Boadi explained that key components of this shortfall include Oil Revenue: Missed by GH¢2.66 billion, Grants: Missed by GH¢339 million and Non-Tax Revenue: Missed by GH¢1.48 billion.
“These shortfalls raise serious doubts about the realism of government revenue forecasts. The budget’s optimism obscures a revenue structure still heavily reliant on volatile oil prices and uncertain donor inflows,” Prof. Boadi noted.
Expenditure Cuts Target Development
In response to the revenue underperformance, the government slashed total expenditure by GH¢18.4 billion. According to Prof. Boadi, this aggressive expenditure compression disproportionately affected capital expenditure—the portion of the budget dedicated to infrastructure, schools, hospitals, and long-term development.
“The numbers may show fiscal discipline, but it comes at the cost of public investment and job creation. You can’t cut your way to prosperity,” he stressed.
No Funded Growth Strategy
Prof. Boadi further critiqued the government’s inability to outline a credible, funded, and time-bound growth strategy. While policy slogans such as the 24-Hour Economy and The Big Push Programme have been prominently featured, he said there is little evidence of coordination, sectoral integration, or measurable outcomes.
“Despite grand announcements, synergy is missing, and implementation remains sluggish. Sectoral silos still dominate. Without a clear roadmap and credible funding, these programmes remain rhetorical flourishes,” he stated.
Budget Drifting Without Direction
The IERPP insists that Ghana’s fiscal trajectory under the 2025 Mid-Year Review is marked more by improvisation than by reform. The institute contends that focusing on short-term optics like selective interest savings or cosmetic deficit reductions, only distracts from the urgent need for structural transformation and inclusive growth.
“While the government touts economic stability and fiscal wins, the mid-year budget is a tale of missed revenue, gutted investments, and unfulfilled promises. Ghana’s economic future cannot be built on underperformance and improvisation,” Prof. Boadi said.
He called on policymakers to stop masking budgetary weaknesses with technical adjustments and instead focus on building a resilient fiscal architecture anchored in transparency, efficiency, and long-term development priorities.
