The Institute for Fiscal Studies (IFS) has slammed the government over what it calls a "missed opportunity" in capturing revenues from the small-scale mining sector.
The sector has been a significant contributor to Ghana's economy, with gold exports increasing over the years. However, revenue from the sector remains low, according to data from the Bank of Ghana.
IFS Criticizes Finance Minister's Handling of Small-Scale Mining Revenue
The IFS has criticized the Minister of Finance, Dr. Cassiel Ato Forson, for failing to capture more revenues from the small-scale mining sector. In its analysis of the 2026 Mid-Year Budget review, the policy think tank said the Finance Minister failed to realize the expected revenue from the sector for national development.
According to the IFS, available data and publications from the Bank of Ghana confirm that even though gold exports from small-scale mining increased, revenue from the sector was low. The Executive Director of the institute, Dr. Said Boakye, stated that it is "appalling to note that the Mid-Year budget review fails to articulate government strategy on how to increase revenue from the small-scale mining sector looking at how critical the sector is, and the potential it holds for our economy".
Underspending and Low Revenue Inflow
Dr. Boakye also highlighted the issue of underspending by the government, which has been low on key sectors. He stated that the considerable underspending in the first half of 2026 relative to the budget plan not only undermined the budget's credibility but also left much to be desired in terms of growth and development of the country.
The government had targeted expenditure of GH¢172.54 billion for the first half of 2026, but actual spending was significantly lower. Dr. Boakye emphasized that it will be prudent to completely implement approved expenditures.
Recommendations for Government
The IFS has urged the government to target expenditure to key infrastructure investments in the economy to facilitate growth. Dr. Boakye also recommended that funds from the mining sector could be used to cover some shortfalls in the budget, especially after value addition to raw materials.
What's Next for Small-Scale Mining?
The criticism by the IFS highlights the need for the government to revisit its strategy for increasing revenue from the small-scale mining sector. With the sector's potential for growth and development, it is essential for the government to take concrete steps to address the issues raised by the IFS. Only then can the country expect to see the desired growth and development that it seeks.
Source: Joy Online
