The Minority in Parliament has criticised the government’s economic management, arguing that recent fiscal figures show signs of weak economic activity rather than improved financial performance.
Speaking during a parliamentary debate over the Mid-Year Budget Review, former Deputy Finance Minister and Member of Parliament for Atiwa East, Abena Osei Asare, questioned the government’s revenue mobilisation efforts, pointing to what she described as significant shortfalls in domestic revenue collection and reduced public investment.
According to the lawmaker, the government targeted GH₵128 billion in domestic tax revenue for the first half of 2025 but failed to achieve the target, recording a deficit of nearly GH₵2 billion.
She attributed the shortfall largely to lower-than-expected revenue from domestic goods and services taxes, which she said fell below projections by about GH₵6.8 billion.
She further noted that Value Added Tax (VAT) collections dropped by approximately GH₵2.3 billion, while excise duty revenues also underperformed.
The Atiwa East MP argued that the figures reflected challenges within the economy, suggesting that businesses and consumers were not engaging in enough economic activity to generate the expected tax revenue.
“The numbers tell a story that people are not buying and businesses are not flourishing,” she said, stressing that economic success should be measured by actual business performance and improved livelihoods rather than government announcements.
The MP also raised concerns about the impact of new tax measures introduced by the government. She said despite the implementation of eight new taxes in 2025, the country still recorded an overall revenue gap of about GH₵5 billion, questioning whether the government’s revenue strategy was achieving its intended purpose.
On government spending, the former Deputy Finance Minister accused the administration of reducing expenditure mainly to control the fiscal deficit instead of investing in projects that could support economic growth.
She pointed to a decline in total government expenditure during the first half of 2025, with capital expenditure alone reducing by about GH₵14.3 billion.
According to her, the cut in development spending has affected key infrastructure projects, including road projects in her constituency.
“Government is therefore not balancing the books. They are just balancing the books by not spending,” she stated, arguing that reduced investment could slow development and affect economic opportunities.
The Minority has therefore called on government to focus on increasing productive investment, supporting businesses and creating conditions that will boost economic activity and improve revenue generation.
