World Bank warns Ghana’s fiscal surplus is being driven by spending cuts

The World Bank has cautioned that Ghana’s fiscal surplus has been achieved largely through spending cuts, with capital expenditure ending 38% below the approved budget.

Mr Taliercio said Ghana’s fiscal consolidation should not rely heavily on reductions in capital expenditure because such spending is critical to infrastructure development and long-term economic growth.

The Tenth Ghana Economic Update assesses Ghana’s recent economic performance and outlines policy measures the World Bank believes are necessary to sustain the recovery and promote stronger and more inclusive growth.