The Institute for Fiscal Studies (IFS) has raised concerns that Ghana’s fiscal deficit and government expenditure for 2025 may be significantly underreported, citing discrepancies in the treatment of the National Investment Bank (NIB) bailout in the Mid-Year Budget Review.
According to the IFS, while government announced a GH₵2.45 billion recapitalization package for NIB, only GH₵450 million in direct cash injection was reflected in the official fiscal data. The package also included GH₵1.5 billion in bonds and GH₵500 million worth of government shares in Nestlé Ghana Limited—but these commitments were not fully captured.
The watchdog argues that under Ghana’s commitment-based fiscal reporting framework, both cash and non-cash expenditures (including bonds and share transfers) should have been recorded. By excluding the GH₵1.5 billion in bonds, the government may be presenting a rosier fiscal outlook than reality suggests.
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“Government’s reported expenditure and deficit for the first half of 2025 understates the full extent of its commitments,” the IFS noted, stressing that GH₵1.95 billion of the support package constitutes direct expenditure or debt obligations.
Why It Matters
The omission raises serious questions about transparency and credibility in Ghana’s fiscal management. If major commitments like the NIB bailout are not fully reported, the IFS warns that deficit projections may be misleading, potentially weakening efforts toward fiscal consolidation.
For citizens, a hidden deficit could translate into more borrowing, increased debt servicing, and higher taxes in the near future—squeezing funds for jobs, infrastructure, and social programs.
What Next?
The IFS has called on the Ministry of Finance to update fiscal accounts to fully reflect the GH₵1.95 billion expenditure, ensuring accurate reporting in line with established fiscal rules. It further urged that all future financial sector interventions be transparently captured to avoid a repeat of past misreporting that fueled Ghana’s debt crisis.
Last Updated on August 27, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
