CPS Warns 2026 Capital Spending Surge Could Falter Without Stronger Revenue Mobilisation
The Centre for Policy Scrutiny (CPS) has cautioned that government’s plan to increase capital expenditure by 141 percent in 2026 may be unsustainable unless urgent steps are taken to strengthen domestic revenue mobilisation.
A Policy Fellow at the Centre, Dr. Prince Adjei, observed that the credibility of the 2026 Budget hinges on government’s ability to close persistent leakages in the tax system. He stressed that the push for higher spending must be matched by a more robust approach to revenue collection.
Dr. Adjei argued that the Ghana Revenue Authority (GRA) must be adequately equipped to implement the new revenue measures outlined in the Budget. “Make the 2026 revenue measures more credible by increasing resources to the GRA to implement the outlined initiatives, which include the deployment of technology to plug revenue gaps,” he said. He added that enforcement must be strengthened particularly in “poorly assessed or high-leakage areas of the revenue system, such as customs.”
He warned that the sharp rise in expenditure must not come at the expense of efficiency, urging government to “undertake rigorous programme and project planning, alongside transparent and cost-effective procurement.” To ensure value for money, he said the public sector should “institutionalise constant evaluation of government programmes to ensure that they are managed and adjusted, as necessary, to achieve expected outcomes.”
Beyond revenue administration, Dr. Adjei called for broader structural reforms that support growth, encouraging government to adopt “more innovative approaches that strike a balance between stability and growth,” while boosting private investment to complement public spending.
With the services sector maintaining its position as the main driver of the economy, he underscored the need for targeted human capital development. He noted that the expanding sector will demand specialised skills, making it imperative for government to strengthen investments in education and workforce training.
For 2026, total expenditure is projected at GH¢302.5 billion—equivalent to 18.9 percent of GDP—while total revenue and grants are expected to reach GH¢268.1 billion.
The CPS therefore urged government to prioritise education and skills development to ensure the country’s talent pipeline aligns with evolving industry needs.
