Ghana’s government spending in the first seven months of 2026 reached GH¢147.077 billion, falling 16.4% short of the GH¢175.9319 billion target set for the period. The figures come from the July 2026 Monetary Policy Report, which detailed the breakdown of expenditures and the factors behind the fiscal performance.
Compensation of Employees accounted for GH¢50.553 billion, missing its target of GH¢52.943 billion by 4.5%. Despite this, the figure rose 12.6% compared to the same period in 2025. Employee compensation made up 35.2% of the domestic revenue mobilised during these months.
Spending on the Use of Goods and Services totalled GH¢5.482 billion, below the expected GH¢7.897 billion, but this still marked a 63.4% increase year-on-year. Total Interest Payments were recorded at GH¢25.171 billion, which was 12.3% lower than the GH¢28.686 billion spent in the corresponding period of 2025. This was also beneath the budget target of GH¢34.117 billion.
The report attributed the reduction in interest payments primarily to lower domestic interest costs and the early payment of certain Eurobond obligations at the end of 2025 that had been scheduled for 2026. It also cited reduced Eurobond debt servicing and concessional refinancing arrangements as contributing factors.
Grants to Other Government Units amounted to GH¢30.611 billion, trailing the target of GH¢35.866 billion and reflecting a slight year-on-year decline of 1.6%. Capital Expenditure hit GH¢24.228 billion, representing 1.5% of Gross Domestic Product. This was 25% less than the programmed target but showed a 157.9% increase compared to the same period in 2025.
Other Expenditure was recorded at GH¢9.283 billion, 13.4% below the target and higher than the GH¢8.107 billion spent in the previous year’s comparable period.
The report linked the overall expenditure shortfall to several factors. Improved macroeconomic conditions helped reduce total interest payments. The relative stability of the Ghana cedi lowered external interest costs. The front-loading of Eurobond payments at the end of 2025 also lessened external interest expenses in 2026.
Containment of administrative spending contributed to lower goods and services costs, reflecting what the report described as “the government’s continued focus on efficiency and value-for-money across MDAs.” The decline in other expenditure was attributed to progress in rationalising energy-related obligations and enhancing efficiency in sector financing.
The 25% fall in capital expenditure was explained by the operationalisation of the commitment authorisation policy under the Public Financial Management Act. This policy requires payments for completed projects only after contractors submit invoices, delaying some disbursements.
The government’s ability to reduce interest payments and administrative costs amid these constraints suggests a shift in spending patterns compared to previous years. However, the significant gap between planned and actual expenditures raises questions about the execution of budgetary priorities in the second half of 2026.
According to Joy Online.
