The Government of Ghana has cancelled nearly 1,800 public investment projects following a nationwide review of government spending, according to the International Monetary Fund (IMF).
The project review forms part of Ghana’s broader public financial management reforms aimed at improving spending efficiency, strengthening fiscal discipline and ensuring that limited government resources are directed towards high-priority development projects.
In its latest IMF Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, the Fund said the government conducted a comprehensive assessment of Ghana’s public investment portfolio.
The exercise resulted in the cancellation of approximately 1,800 projects that were deemed unfeasible, low-priority or no longer consistent with the government’s development objectives.
Government reschedules 2,000 other projects
Beyond the cancelled projects, the government has also rephased or rescoped about 2,000 public projects to bring them in line with available funding and the government’s capacity to implement them.
The IMF said the review is designed to improve the quality of public investment in Ghana while ensuring that scarce public funds are allocated to projects capable of delivering stronger economic and social benefits.
The Fund explained that the rationalisation of the public investment portfolio is intended to align Ghana’s project pipeline with available fiscal resources and implementation capacity.
IMF backs Ghana’s public spending reforms
The review is part of wider efforts by the government to strengthen public investment management, expenditure controls and fiscal governance as Ghana continues its efforts to restore fiscal sustainability following its debt restructuring programme.
The IMF said Ghana is also introducing measures to improve public procurement processes, strengthen commitment controls and enhance oversight of government expenditure.
These measures are expected to help prevent the accumulation of government arrears, improve budget execution and promote more efficient use of public funds.
Reforms expected to create fiscal space
According to the IMF, the reforms should support more efficient capital expenditure while creating fiscal space for priority infrastructure and development projects under Ghana’s proposed Policy Coordination Instrument programme.
The spending reforms also form part of broader government efforts to improve economic governance, public financial management and debt sustainability.
By cancelling non-performing and low-priority projects and restructuring others, the government is seeking to ensure that public investment is focused on projects that offer greater economic returns and contribute to Ghana’s long-term development.
The IMF’s assessment highlights the government’s ongoing efforts to strengthen fiscal discipline, improve government spending, manage public debt and protect Ghana’s economic stability.
Source: newsthemegh.com