Ghana has poor track record of having credible budgets – Report

The Institute for Fiscal Studies (IFS) has criticized the Government of Ghana’s poor track record in producing credible budgets, citing routine over-projection of revenues.

Between 2013 and 2023, actual revenue and grants consistently fell short of targets, averaging a deviation of 7.4%.

IFS emphasized that credible budgets are essential for effective fiscal policy, as unrealistic revenue targets undermine policy implementation and public confidence.

According to the Public Expenditure and Accountability (PEFA) framework, Ghana's revenue deviation was within the acceptable range only twice in 11 years.

To improve budget credibility, the IFS urged the Ministry of Finance to refine its macro-fiscal forecasting, address optimism bias, strengthen tax revenue estimates, and involve independent experts in revenue projections.