As the country assesses the state of its finances during the ongoing mid-year budget review, critical voices from the Minority have cast a spotlight on gaps in fiscal strategy, with Hon. Abena Osei-Asare, Member of Parliament for Atiwa East and Chairperson of the Public Accounts Committee, offering sharp insight into the administration’s budget handling so far.
According to Hon. Osei-Asare, early gains in the first half of the year were largely the result of policy groundwork laid by the previous NPP administration.
In particular, she pointed to declining inflation numbers and improvements in foreign exchange reserves during the first quarter of 2025 as evidence that earlier reforms and international support were yielding dividends.
“We did the last IMF review, and it was successful. And so that chunk, the third tranche of that money, also came in the first quarter of 2025. So then we saw a boost in our forex. We also saw the inflation numbers coming down, and we saw things really easing.”
Hon. Abena Osei-Asare
Hon. Osei-Asare emphasized that these economic improvements—especially the stronger performance of the Ghanaian cedi and reduced inflation—should not be viewed as isolated achievements.
Instead, she credited them to earlier measures, such as the now-scrapped e-levy and foreign exchange interventions like the Gold-for-Oil initiative.
However, her optimism waned when discussing the current government’s fiscal policy decisions following their assumption of office in March 2025.
She criticized the introduction of the controversial Dumsor Levy, officially known as the Fuel Levy, calling it “substantially higher than the e-levy” it replaced.
According to her, the burden this placed on consumers and businesses has not translated into visible economic transformation.
One central theme of her commentary is that despite steady payment of public sector salaries, there appears to be limited funding for capital projects that could stimulate wider economic growth.
She raised concerns about abandoned roadworks and halted infrastructure projects across various constituencies, attributing them to delays in contractor payments.
Contractor Delays, Forex Access Top Issues
Hon. Osei-Asare, the Atiwa East MP, further stressed that the mid-year budget review must not only report numbers but also provide clarity on how revenue has been allocated thus far—and how the government plans to use future inflows to catalyze economic activity.
“There is a lack of funds,” she asserted, noting that the government’s spending appears heavily skewed towards salaries and administrative costs, while key development-oriented activities remain stalled.
She urged a swift resolution to contractor arrears, which she believes is critical to reviving dormant infrastructure projects and, by extension, reinvigorating local economies.
Another significant concern raised involves access to foreign exchange, particularly among importers preparing for the holiday season.
She recalled that measures implemented under the previous administration had contributed to a relatively stable cedi, allowing traders to access forex more easily.
Now, however, she noted a growing struggle among traders to source foreign currency, a situation that threatens to choke the flow of imported goods just months ahead of Christmas.
“They are asking for forex, and they can’t find forex,” she reported, pointing to the urgent need for a strategy to ensure currency availability for import-driven commerce.
Adding to the list of challenges, Hon. Osei-Asare highlighted an emerging crisis in the aviation sector. She revealed that flight operations are increasingly being disrupted due to a lack of aviation fuel. In one instance, a flight to Kumasi was cancelled outright.
These fuel shortages, she warned, could have broader implications for business travel, tourism, and regional trade—all of which rely on a functioning domestic flight network.
“We expect the government to tell us the way forward on this,” she said, emphasizing the urgency of the issue and its potential ripple effects on economic performance if left unaddressed.
Transparency Demanded in Mid-Year Budget Review
Accordingly, Hon. Abena Osei-Abena called for transparency in how revenues are being spent and a more forward-looking strategy that balances stability with proactive growth.
She urged the Finance Minister to outline actionable steps in the mid-year review that would directly impact employment, trade, and infrastructure development in the months ahead.
“Looking forward to the end of the year, we want to know how they intend to make things better than what it is now,” she said, summing up the public’s expectation for not just fiscal discipline, but economic revitalization.
As the review continues, stakeholders from across the political and economic spectrum are likely to echo many of these sentiments.
With inflation under control and the cedi relatively stable, the challenge now lies in turning macroeconomic calm into inclusive, grassroots-level progress. All eyes are on the government to show how it plans to do just that.
