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Friday, November 14, 2025

Minority demands cut in 2026 Appropriation Bill over ‘massive fiscal, expenditure failures’

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The Minority in Parliament is mounting pressure on the government to significantly cut down its request in the 2026 Appropriation Bill, arguing the administration has demonstrated a clear inability to spend and manage public finances effectively.

This renewed demand follows criticism from former Finance Minister Dr. Mohammed Amin Adam, who revealed that the government failed to utilise last year’s budget, missed its revenue targets, and continued to rely on what he termed ‘unlawful’ Bank of Ghana financing.

Speaking at a press conference in Parliament on Friday, November 14, sa day after the Finance Minister presented the 2026 Budget to the House, Dr. Amin Adam stressed that the Mahama-led administration does not have the capacity to manage the funds Parliament approved in 2025, insisting that giving them additional fiscal space in 2026 would worsen the situation.

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He disclosed that although Parliament granted substantial appropriations last year, the government could not release the full amounts — a sign that the fiscal system under the current administration has collapsed.

“Last year we gave them appropriation; they could not even spend it. They don’t have the ideas or the capacity to implement what is approved,” he said.

According to him, instead of releasing GH¢5.1 billion for goods and services, the government issued only GH¢3.8 billion. Again, of the GH¢26.6 billion approved for compensation for the first three quarters, only GH¢23.11 billion was disbursed.

He added that capital expenditure (CAPEX) performance was even worse, with the government failing to pay the commitments it issued, despite allocating over GH¢11 billion.

The Minority warned it will oppose any attempt by the government to secure the same or higher levels of appropriation for 2026.

Dr. Amin Adam argued that approving more funds for an administration that has demonstrated fiscal weakness would be irresponsible.

“A government that has no capacity to spend should not be given room in terms of appropriation. We will move on the floor of Parliament to have the 2026 appropriation reduced,” he declared.

The government is seeking approval for a total expenditure of GH¢302.5 billion for the 2026 fiscal year. A significant portion of this budget, specifically GH¢30.8 billion, has been earmarked for the ‘Big Push’ infrastructure initiative, which focuses primarily on road construction and other critical projects. This allocation is more than double the GH¢13.8 billion provided for the same initiative in the 2025 budget.

Dr. Amin Adam also pointed to deep gaps in revenue mobilisation, stating that the government recorded shortfalls of: GH¢7.7 billion in oil revenue, GH¢6.8 billion in domestic revenue, and almost GH¢9 billion in tax revenue.

He said the administration’s earlier bragging about revenue performance has proven to be false. “They were too boastful about revenue improvements, but the reality is that they have failed. The numbers show massive shortfalls across the board,” he maintained.

Dr. Amin Adam warned that the Bank of Ghana’s continued financing of government expenditure, including wage payments, violates commitments made under the IMF programme.

The former minister accused the government of failing to release funds for the wage bill under the digital payments system, forcing the central bank to intervene.

These trends, the Minority said, justify a decisive reduction in the upcoming Appropriation Bill, stressing that maintaining or increasing allocation levels would only deepen Ghana’s fiscal instability.

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